Shares of GVK Power & Infrastructure were locked at the 5 per cent lower circuit at Rs 5.61 on the BSE on Friday after revocation of suspension on trading in equity shares of the company with effect from today.
The stock of the engineering, designing & construction company resumed trading at Rs 5.90 on the BSE. On the National Stock Exchange (NSE), the stock quoted at Rs 5.70, after opening at Rs 6 per share.
Till 11:27 am, a combined 1.8 million equity shares changed hands and there were pending sell orders for around 9 million shares on the NSE and BSE, the exchanges data show. Shares of GVK Power & Infra last traded on August 2, 2021 and closed at Rs 2.72 on the BSE.
GVK Power & Infra is primarily engaged in the business of providing operation and maintenance services, manpower & consultancy services and incidental services to owners of power plants, airports and infrastructure companies.
On the future outlook, GVK Power in its FY22 annual report said that all infrastructure companies across India were facing challenging times due to their financial exposure to Banks and Lending Institutions. Repayment of these loans have become a real task particularly when their revenue flows are which are either minimal or nothing due to delays or very long gestation periods.
As a result, they are unable to make loan repayments and are branded as Non-Performing Assets (NPA) by their Lenders. The situation for some companies is very bad because even though their projects / plants are completed / ready for operations, they are unable to operate due to non-availability of natural gas / coal etc. Majority of these factors are not under the control of the management. GVK is no exception to this, the company said.
Though there has been some an unavoidable delay, the 26th & 27th Annual General Meetings were duly held on 29th October, 2021 and 25th February, 2022 respectively, after giving requisite notices to all the concerned under the Companies Act, 2013. Annual reports for the FY 2019-20 and 2020-21 have been duly filed with the respective exchanges as per Regulation 34 of SEBI (LODR), 2015 and the same have been uploaded on the website of the Company www.gvk.com as well, GVK Power said on status on suspension of trading.