GMR, Temasek and IDFC Alternatives-led consortium of investors, IDFC Consortium, has agreed to restructure its existing investment in GMR Energy Ltd (GEL).
These investors had invested ₹1,395 crore in compulsorily convertible preference shares (CCPS) in GEL in 2010. GMR group and the investors have now agreed to restructure the terms taking into account the interest of both the parties.
GMR Infrastructure Ltd, subject to satisfaction of conditions precedent, will issue CCPS worth ₹788.8 crore to Temasek and ₹347.8 crore to the IDFC Consortium through a preferential allotment. The residual investment of the investors in GEL will continue.
Commenting on the arrangement, GMR Group Chairman GM Rao said, “This is the culmination of the long-term partnership with the investors and demonstrates their confidence in the Group. We are confident that together with the support from the investors, we will build a strong energy portfolio. This will also pave way for value creation at GMR Energy and GIL as the Power portfolio has almost reached the peak of its capex cycle and is getting into the operational phase”.
Satish Mandhana, Managing Partner and Chief Investment Officer at IDFC Alternatives, 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. We look forward to a successful IPO of GEL in near future,” he added.