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GMR Infra up 6% on reprieve from S'pore on Maldives contract

Last Updated: Monday, December 3, 2012 - 19:16

Mumbai: Shares of GMR Infrastructure Monday ended with a gain of nearly 6 percent after the company won a reprieve from Singapore High Court which stayed the unilateral termination of its USD 500 million Male airport project by the Maldivian government.

After surging over 6 percent during the day, shares of the company finally ended at Rs 19.65, up 5.36 percent on the BSE. At NSE, the scrip settled at Rs 19.70, up 5.91 percent from its previous close.

"The stock saw an uptick in a knee-jerk reaction to the Singapore High Court outcome," CNI Research CMD Kishor Ostwal said.

After the Maldivian government terminated the contentious project under domestic political pressures, GMR moved the Singapore High Court against the decision.

As per the project contract, in case of any differences between parties, the law of either Singapore or UK would apply.

"The High Court of Singapore has today granted injunctive relief against the applicability and operations of Letter dated November, 27 issued by the Ministry of Finance & Treasury (MoFT), Government of Male," GMR said in a statement.

The Maldivian Airport Company Limited (MACL), based on Maldivian government's instructions, had on November 27 terminated the contract, which was given to GMR in 2010 during the previous regime of President Mohamed Nasheed.

However, immediately after the Singapore High Court verdict, Maldives made it clear that its termination decision was "non-reversible and non-negotiable" and said no such injunction can be issued against a sovereign state.


First Published: Monday, December 3, 2012 - 13:56
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