Adani Ports and Special Economic Zone and GVK Power surged 5 percent on Monday after Adani Airport Holdings (AAHL) announced it has signed an agreement to acquire the debt of GVK Airport Developers Limited (GVK ADL).

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Adani port rose as much as 5.2 percent to day's high of Rs 378.45 while GVK Power was locked in 5 percent upper circuit at Rs 3.43.

AAHL is a subsidiary of Adani Enterprises, and GVK ADL is the holding company through which GVK Group holds 50.50 percent equity in Mumbai International Airport Limited (MIAL), which in turn also holds 74 percent equity stake in Navi Mumbai International Airport Limited, Adani said in a press release.

"The Adani Group will also take steps to complete the acquisition of a 23.5 percent equity stake from ACSA and Bidvest in MIAL for which it has obtained CCI approval," it said.

GVK in a statement added that Adani will infuse funds into Mumbai International Airport Limited to provide liquidity and will work towards achieving financial closure of the Navi Mumbai International Airport project by Adani at the earliest in order to begin construction.

"The aviation industry has been severely impacted by COVID-19, setting it back by many years and has impacted the financials of Mumbai International Airport Limited. It was therefore important, that we bring in a financially strong investor in the shortest possible time to improve the financial position of MIAL, as well as to help achieve Financial Closure of the Navi Mumbai International Airport project, which is a project of national importance. It is under these circumstances that we agreed to cooperate with Adani so as to achieve these twin objectives.," GVK Reddy, Founder, and Chairman, GVK said in a statement.

First Published:Aug 31, 2020 12:48 PM IST