GMR Energy Ltd, part of the diversified GMR Infrastructure Ltd, has filed a Draft Red Herring Prospectus with SEBI for a proposed initial public offer.

While the approvals for the public offer may take two to three months, the timing of the offer will depend on market conditions.

According to sources, the company is considering raising ₹1,400-1,500 crore to meet the funding requirements for its ongoing power projects. The funds will also be used to pare its debt.

GMR Energy has a portfolio of 15 power generation assets of which eight are operational and seven are under various stages of development. The power projects span coal-based thermal assets and gas-based power plants. The company is in the process of paring its debt at the corporate level divesting some select assets to ease up equity and re-infuse capital in some of the ongoing projects.

The company has invested significantly in the energy business. Some of its investors include IDFC and Temasek Holdings — a Singapore Government investing arm. They may also pitch in with some investments ahead of the IPO.

On Monday, GMR Infra shares closed at ₹21.95, up 1.39 per cent, on the BSE.

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