GMR Energy offload stake to private equity investors

GMR Energy, belonging to the GMR Group, is considering offloading 5-10% stake in favour of private equity investors as part of plan to mop up Rs 2,600 crore. The funds raised would be used to complete its ongoing power projects. The funds raised would be used to complete its ongoing power projects. The decision to offload the stake gathers weight after the company deferred its earlier initial public offering (IPO) plan following dismal market conditions.

GMR, which has 800 MW power capacity under construction, is setting up a 1,050 MW coal-fired plant each at Kamalanga, Orissa, and Chattisgarh and a 300 MW hydel project in Uttaranchal. Its 160 MW and 180 MW hydel projects are under construction up at Talong in Arunachal Pradesh and Bajoli Holi in Himachal Pradesh, respectively. In Nepal, the company is building 550 MW hydel capacity, the report added.

The company has already chalked out investments of Rs 13,000 crore for building about 3,300 MW power generation capacity in the country. Of this, about 80% of the investment will be funded via debt while the rest will come through private placement of 5-10% equity, the report stated.