GMR Airports Infrastructure share price jumps 4% to touch 52-week high on exemption from Monthly Annual Fee

GMR Airports Infrastructure share price jumped over 4% to touch a 52-week high on Monday's session in response to few news developments. According to an exchange filing, the company stated that Delhi International Airports Limited (DAIL), a step-down subsidiary, has been exempted from paying the Monthly Annual Fee (or MAF) for the period of March 19, 2020, to February 28, 2022, after the arbitral tribunal passed its decision on January 6.

Additionally, the news of the block deal reportedly added to the positive sentiment in the shares.

GMR Airports infra share price opened at an intraday low of ₹80.15 apiece on BSE. GMR Airports share price touched an intraday high of ₹87.55 per share.

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According to the exchange filing, DIAL had invoked arbitration against the Airports Authority of India (AAI) to seek certain reliefs that were entitled to it due to the Force Majeure event (Covid-19 period) under the Operation, Management, and Development Agreement dated April 4, 2006 (OMDA).

Refunds of MAF, plus interest, were mandated for DIAL's payments to AAI from March 2020 to December 2020. From January 2021 to February 2022, DIAL has been likewise exempt from paying the MAF.

The OMDA's term will be extended by one year and eleven months, or the time period exempted by a force majeure, said the company in an exchange filing.

Also Read: GMR Airports jumps around 14% to 52-week high of ₹70.22; here's why

US-based GQG Partners, a boutique investment firm, purchased shares in the GMR Airports Infrastructure block deal last December. 

Through a block deal on the exchange in December, GQG purchased a 4.68% stake (28.28 crore shares) in the company for ₹1,671.55 crore. Other significant investors took part. Stichting Depositary Apg Emerging Markets Equity Pool bought a 0.56% stake (3.4 crore shares) for ₹198 crore, while Nomura India Investment Fund Mother Fund bought a 1% stake (6.2 crore shares) for ₹363.7 crore.

Also Read: GQG buys stake in GMR Airports Infra

As per trendlyne data, GMR Airports Infrastructure stock price rose 115.84% and outperformed its sector by 55.27% in the past year.

"I've been keeping an eye on GMR Airports Infrastructure and it seems like the stock has been doing pretty well this month, with an improvement of almost 9% so far. It's worth noting that the stock has surpassed a major top of 80 level that was formed back in 2009, and it's currently in a strong trend. While there may be some intermediate corrections, they could also present a good opportunity to buy.It's important to keep in mind that the stock has support levels at 79 and 72.

Looking at the big picture, it seems like there is still potential for the stock to continue going up, with a possible upside of up to 110 level from a positional perspective," said Kapil Shah, Technical Analyst, Emkay Global and Technical Trainer, Finlearn Academy.

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