GMR Infrastructure will acquire shares from investors in its subsidiary GMR Airports as the company looks to consolidate its holdings. GMR is a diversified group with presence in airports, power and other sectors.
In a regulatory filing, GMR Infrastructure said it has "decided to exercise the Call Option requiring the respective investors to transfer the Compulsorily Convertible Preference Shares (CCPS) of GMR Airports Ltd to the company".
Despite repeated attempts, specific details could not be ascertained. Generally, Call Option provides an investor the right to buy securities at a pre-determined price within a specific time.
According to the filing, the Call Price would be computed on the basis of respective agreements entered into between the investors and the company.
"The completion of the transaction would be upon the receipt of the requisite approvals by the parties under the applicable law from the relevant authorities," it added.
The decision to exercise the Call Option was taken at the meeting of the company board's management committee held on Wednesday. Shares of the company rose over one percent to close at Rs 16.80 on the BSE.
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