Shares of GMR Power rallied 5% during the early trading hours on 22 November after the company acquired an additional stake in GMR Energy.

The company has acquired an additional 29.2% stake in GMR Energy, a subsidiary of the company.

In its regulatory filing, the company said that the current acquisition consolidates with the company’s existing stake in GMR Energy from 57.7%, which is held by itself and its subsidiary, to around 86.9% post-acquisition.

The company said, “With this complete buy-out of Tenaga stake, the Shareholders Agreement (SHA) with Tenaga stands terminated, thereby, enabling full consolidation of revenues and earnings of GMR Energy with the GMR Power, which till now was being done on an equity method or joint venture accounting.”

GMR Energy was established on 10 October 1996 and is in the business of development, operation, and maintenance of power generation, transmission, power projects, trading of electricity, and distribution through its subsidiaries.

They further said that other than direct and indirect shareholding of these entities in GMR Energy, the promoters or promoters group have no other interest in GMR Energy or in its transaction.

At 1:06 pm, the shares of GMR Power were trading 1.13% higher at Rs 40.45 on NSE.