GVK Power & Infrastructure Ltd has entered into a share purchase agreement with Anagha Constructions Pvt Ltd and Visakha Constructions Pvt Ltd to sell and transfer the entire equity stake in three of its smaller subsidiaries. The sale relates to Goriganga Hydro Power Pvt Ltd and GVK Oil & Gas Ltd, both wholly-owned subsidiaries and GVK Energy Ventures Pvt Ltd, a step-down subsidiary of the company.
There was no turnover from these subsidiaries and the net worth of the Goriganga arm was Rs 35.23 lakh, that of GVL Oil & Gas Rs 7.53 crore and that of GVK Energy Ventures Ltd Rs 407 crore. Following the completion of the sale, the three companies will cease to be its subsidiaries. The company has accumulated losses during the previous two years. It has delayed payment of loans and interest and certain loan accounts have been classified as non-performing by banks. The company has provided guarantees and commitments to provide financial assistance to various entities in the company.
However, the uncertainties in various projects is causing delays in developing coal mines. It also faces considerable challenges in some of its gas-based plants due to lack of fuel supplies and tariff-related issues with hydel projects. The GVK management, however, hopes to establish a profitable business once some of these concerns are addressed. It is also seeking to reduce debt thrugh stake sale in some of the entities.
Referring to the scheme of amalgamation of GVK Airport Developers Ltd, a wholly-owned subsidiary of the company, with Bangalore Airport & Infrastructure Developers Ltd, the company said the proposed scheme of arrangement was filed with the Registrar of Companies, Telangana and Andhra Pradesh, for its comments on February 7, 2018. The proposed scheme would be taken up with the regional director after receiving the ROC’s approval.
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