GMR Infra share price down after subsidiary told to pay Rs 1,092 crore to SEPCO
GMR Infrastructure's share price was down over 3 percent intraday on November 24 after an arbitration tribunal asked its arm, GMR Kamalanga (GKEL), to pay Rs 1,092 crore to SEPCO Electric Power Construction towards project payments and prolongation costs.
The Chinese company had claimed project payments and prolongation costs from GKEL, which had also sought compensation for delays in project and defect liabilities.
"GKEL is studying the detailed arbitration award and is assessing the legal options as it can challenge the award within 90 days in courts in India," GMR Infrastructure said.
In 2014, GKEL encashed bank guarantees of about Rs 580 crore furnished by SEPCO towards repayment of terms loans and consequential reduction of interest burden on the project, media reports said.
The stock was trading at Rs 25.55, down Rs 0.90, or 3.40 percent at 1310 hours. It touched an intraday high of Rs 27.30 and an intraday low of Rs 24.95.
The scrip also witnessed a spurt in volume by more than 7.55 times and was trading with volumes of 4,936,306 shares, compared to its five-day average of 917,759 shares, an increase of 437.87 percent.