GVK Power & Infrastructure has entered into an 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 networth of Goriganga arm was ₹35.23 lakh, GVK Oil & Gas’ ₹7.53 crore and that of GVK Energy Ventures ₹407 crore.

Following the completion of the sale, these three outfits will cease to be subsidiaries of GVK Power & Infra.

The company has accumulated losses, and 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 for financial assistance to various entities in the company.

However, the uncertainties in various projects is causing delays in developing coal mines.

There has also been considerable challenge when it comes to some of the gas-based plants due to lack of fuel supplies and tariff-related issues with hydel project.

The GVK management, however, hopes it will be able to establish profitable business once some of these concerns get addressed, and meet various financial commitments.

It is also seeking to reduce debt by stake sale in some of the entities.

Referring to the scheme of amalgamation of GVK Airport Developers, a wholly-owned subsidiary of the company, with Bangalore Airport & Infrastructure Developers Ltd, the company said the proposed scheme of arrangement has been filed with the Registrar of Companies, Telangana and Andhra Pradesh for its comments on February 7.

The proposed scheme after the ROC nod shall be taken up with the regional director for approval.

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