LIC-backed multibagger penny stock: This airport infrastructure company enters into binding agreement with NIIF for investment worth Rs 675 crore; know more here!

The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 36 per share. 

In a key development for Bhogapuram International Airport, GMR Airports and NIIF signed a deal for NIIF to invest up to Rs 6.75 billion in GVIAL, the project's special purpose vehicle. This builds on their 2022 partnership for NIIF to invest in three GMR airport projects. Marking NIIF's second airport investment after GMR Goa, this collaboration strengthens Bhogapuram's development, aiming to transform Visakhapatnam into a global investment hub.

In 2020, GVIAL landed the 40-year concession to build and run the Bhogapuram International Airport (BIA), north of Visakhapatnam. Envisioned to become the biggest airport in Andhra Pradesh, BIA is part of the national infrastructure plan and will initially cater to 60 lakh passengers, scaling up to 4 crore eventually.  

With NIIF investing through convertible debentures, BIA promises a world-class passenger experience, drastically improving air travel in the region. This project will not only fuel northern Andhra Pradesh's connectivity and infrastructure but also align with national goals of enhanced air travel, particularly in smaller cities. GVIAL is poised to be a key driver of Andhra Pradesh's economic growth for years to come.

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.

Today, shares of GMR Airports Infrastructure Ltd gained 6 per cent to Rs 77.77 per share from its previous closing of Rs 73.39. The stock’s 52-week high is Rs 79.47 and its 52-week low is Rs 36. The company has a market cap of over Rs 45,000 crore with a 3-year stock price CAGR of 50 per cent.

As of September 2023, Life Insurance Corporation of India (LIC) owns a 1.72 per cent stake in the company and till told they have gained over 90 per cent from this stock. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 36 per share and investors should keep an eye on it.

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