Multibaagger power generation stock at Rs 103.70 was locked in upper circuit on July 02; Know more here!
The stock gave multibagger returns of 400 per cent in just 1 year whereas BSE Small-cap Index is up by 61 per cent.
Stock Update
On Friday, shares of GMR Power and Urban Infra Limited were locked in a 5 per cent upper circuit to Rs 103.07 per share from its previous closing of Rs 98.17. The stock gave multibagger returns of 400 per cent in just 1 year whereas BSE Small-Cap Index is up by 61 per cent. The stock also made a fresh new 52-week high of Rs 103.07 per share whereas its 52-week low is Rs 18.83 per share.
News
GMR Power and Urban Infra Limited (GPUIL) issued USD 275 million worth of convertible bonds (FCCBs) to the Kuwait Investment Authority (KIA) in December 2015. These bonds allowed KIA to convert them into equity shares of the company at a predetermined price. In January 2022, GPUIL underwent a business demerger. As a result, the FCCB liability was divided between GPUIL and another company, GMR Airports Infrastructure Limited (GIL). KIA's original US$300 million FCCBs were adjusted accordingly. KIA retained USD 25 million worth of FCCBs in GIL and received a new USD 275 million FCCB issue from GPUIL. The conversion price for both sets of FCCBs was also adjusted to reflect the demerger.
Recently, KIA transferred these FCCBs to two other entities, Synergy Industrials, Metals and Power Holdings Limited (Synergy) and GRAM Limited (GRAM). Both Synergy and GRAM exercised their right to convert their portions of the FCCBs into equity shares of GPUIL. This conversion resulted in Synergy holding 8.71 per cent and GRAM holding 6.85 per cent ownership of GPUIL's equity capital. It's important to note that since they are now shareholders, the outstanding interest on the original FCCBs was waived as part of the overall agreement.
Earlier, the company announced a significant development concerning a dispute with the National Highways Authority of India (NHAI). Their subsidiary, GMR Hyderabad Vijayawada Expressways Private Limited (GHVEPL), had constructed a highway between Hyderabad and Vijayawada. However, after the project's completion, a revenue shortfall occurred due to the division of the route between Telangana and Andhra Pradesh. GHVEPL claimed compensation for these losses under the agreement, citing a change in law. To avoid further legal proceedings, both parties agreed to an amicable settlement. NHAI will pay GHVEPL Rs 1,387.21 crore in two tranches. The project has now been handed back to NHAI as of July 1st, 2024. This settlement provides financial relief for GPUIL. The first tranche of Rs 850 crore will be used to pay off loans, while the remaining amount will be used to reduce GPUIL's debt and invest in other business ventures.
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Furthermore, GMR Smart Electricity's (GSEDPL) recent success in securing smart meter projects in Uttar Pradesh. These projects, valued at Rs 7,593 crore, involve installing 7.57 million meters across several cities. Partnering with Bosch for expertise and investment, GSEDPL aims to establish dedicated entities for the installation process. This project signifies GMR's commitment to the green energy sector and holds promise for future growth.
About the GMR Power & Urban Infra Ltd (GPUIL)
GMR Power & Urban Infra Ltd (GPUIL), a subsidiary of the GMR Group, is a leading Indian company with expertise in energy, urban infrastructure, and transportation. They operate across three main business segments: energy generation with a balanced fuel mix including coal, gas, hydro, solar, and wind; road and transportation projects encompassing highways, railways, metros, and airstrips; and Engineering, Procurement, and Construction (EPC) services for various infrastructure sectors.
Currently, energy is their biggest revenue driver, followed by roads & transportation, and then EPC. They have a strong track record with over 3,000 MW of installed power generation capacity and over 1,800 lane kilometres of operational roads & highways. Notably, they are nearing completion of a major EPC project for a section of the Eastern Dedicated Freight Corridor.
Disclaimer: The article is for informational purposes only and not investment advice.
Also Read: President of India bought 12,39,77,188 shares of this multibagger stock under Rs 75; LIC owns 1.86 per cent stake & Stock zooms over 13 per cent!