GVK Industries, a step down subsidiary of GVK Power & Infrastructure, said Monday the AP Transco has decided exercised their option to buy out its 217 MW (Phase 1) power plant situated at Jegurupadu Village, Kadiam Mandal, Rajahmundry, East Godavari District, Andhra Pradesh in terms of the provisions specified under the power purchase agreement (PPA).

The power purchase agreement signed by GVK Industries with the erstwhile APSEB, now AP Transco, was expired on Jun. 20, 2015 as it had completed its validity period of 18 years.

Shares of the company gained Rs 0.24, or 2.98%, to trade at Rs 8.29. The total volume of shares traded was 239,711 at the BSE (1.43 p.m., Monday).