Promoter of GVK Power & Infrastructure, GV Krishna Reddy's wife sells part GVK power stake

MUMBAI | HYDERABAD: G Indira Krishna Reddy, wife of the promoter of GVK Power & Infrastructure GV Krishna Reddy, has sold a part of her stake in GVK Power to group company Vertex Infratech.

Stock exchange filings show Indira Krishna Reddy transferred 40.95 million shares, which constitutes about 2.59% stake in GVK Power, at 17.85 per share to Vertex for about 71 crore. The share sale is part of the group's attempts to raise funds and retire short-term debt for the $1.26-billion purchase of Australia's Hancock Coal.

"Today's bulk deal is part of a routine transfer of shares among the entities of promoters and there is no specific agenda, such as plans to pledge the shares to raise funds," said GV Krishna Reddy, chairman of the GVK Group.

The inter-se transfer will take Vertex's total stake in GVK Power to 7.40%.

Investment bankers said shares were transferred to a special purpose vehicle which will be leveraged to raise funds and repay debts.

The company raised $1.3 billion from a consortium of Indian banks to fund the acquisition of Hancock Coal from promoter Gina Rinehart.