LIC-backed multibagger airport infra stock entered into a SPA to acquire 4,60,000 shares of Waisl Limited

The stock gave multibagger returns of over 100 per cent form its 52-week low of Rs 40 per share.

GMR Airports Infrastructure Limited informed that the company has entered into a Share Purchase Agreement (SPA) to acquire 4,60,000 equity shares of Waisl Limited (WAISL) (representing 8.40 per cent of the equity shares of WAISL) from Utthishta Virat Fund, an existing shareholder of WAISL, for a total consideration of Rs 56.66 crore.

WAISL was incorporated on October 22, 2009, under the Companies Act, 1956 and is engaged in the business of delivering world-class, end-to-end digital infrastructure at airports and operates as an exclusive partner for IT services at airports. Revenue from operations of WAISL for the FY 2023, 2022 and 2021 were Rs 391 crore, Rs 152 crore and Rs 143 crore respectively. The proposed acquisition of shares by the Company from Utthishta Virat Fund would not be a related party transaction and the promoter/promoter group of the Company does not hold any interest in the said transaction.

The company has been exploring opportunities to invest in entities engaged in Airport adjacencies/ Airport businesses etc. to strengthen its presence in all aspects of airport-related / airport-adjacent businesses. There are no governmental or regulatory approvals required for the above acquisition.

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GMR Airports Infrastructure Ltd is mainly engaged in the development, maintenance and operation of airports, generation of power, coal mining and exploration activities, development of highways, development, maintenance and operation of special economic zones, and construction business including Engineering, Procurement and Construction (EPC) contracting activities.

On Friday, shares of GMR Airports Infrastructure Ltd plunged 2.86 per cent to Rs 85.60 per share from its previous closing of Rs 88.12 with an intraday high of Rs 89.78 and an intraday low of Rs 84.60. The stock’s 52-week high is Rs 94.30 and its 52-week low is Rs 40. The company has a market cap of over Rs 51,000 crore with a 3-year stock price CAGR of 50 per cent.

As of March 2024, Life Insurance Corporation of India (LIC) owns a 1.72 per cent stake in the company and till today they have gained over 100 per cent from this stock. The stock gave multibagger returns of over 100 per cent form its 52-week low of Rs 40 per share and investors should keep an eye on it.

Disclaimer: The article is for informational purposes only and not investment advice.