BackGMR Group, Temasek, IDFC agree to restructure investments in GMR Energy
GMR Infra will issue CCPs worth Rs788.8 crore to Temasek and CCPs worth Rs347.8 crore to the IDFC consortium through a preferential allotment.
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Mumbai: Bangalore-based infrastructure conglomerate GMR Group, Singapore’s state-owned investment firm Temasek Holdings Pte Ltd, and a consortium of investors led by Indian private equity (PE) firm IDFC Alternatives have agreed to restructure their investments in GMR Energy Ltd (GEL) ahead of a planned public offering of its shares.
GMR Infrastructure Ltd, the flagship company of GMR Group, will issue compulsorily convertible preference shares (CCPs) worth Rs788.8 crore to Temasek and CCPs worth Rs347.8 crore to the IDFC consortium through a preferential allotment.
“The residual investment of the investors in GEL will continue," GMR Group said in a statement on Friday.
These investors had invested a combined Rs1,395 crore in CCPs in GMR Energy in 2010.
GMR Group has plans to sell GMR Energy shares to the public through an initial public offer (IPO).
The investment restructuring will pave the way for value creation at GMR Energy and GMR Infrastructure as the group’s power portfolio has almost reached the peak of its capital expenditure cycle and is getting into the operational phase, GMR Group chairman G.M. Rao said.
“GMR Energy has been our fourth investment with the GMR Group in the past 10 years. This step is a clear demonstration of how the investors and GMR worked together to forge a win-win solution by being considerate of partnership obligations, in a very difficult and challenging external environment for the power sector," said Satish Mandhana, managing partner and chief investment officer at IDFC Alternatives.
GMR Energy has about a dozen companies under its fold including GMR Power Corp. Ltd, Vemagiri Power Generation Ltd, EMCO Energy Ltd and GMR Kamalanga Energy Ltd.
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