GVK Power & Infrastructure shares rise 4% on Monday on announcement that it would pay $1.26 billion for a majority stake in three coal mines and a port and rail project owned by Hancock Group of Australia.
This news comes at a time when a number of power projects, including that of state-run NTPC and ADAG Group’s Reliance Power, are grappling with delays led by coal and fuel linkages to ensure sustainability of their power units. This operational delay of projects has led to under-rating of power shares on the bourses.
Under this stake buying program, GVK group will acquire a 79% stake in the coal mines situated at Galilee Basin. This will ensure long-term coal supplies for GVK Group’s power projects.