GMR, investors rework their investment in GEL

BANGALORE: GMR today said the company along with other investors have agreed to restructure their existing investment in GMR Energy Ltd.

GMR, Temasek and IDFC Alternatives led consortium of Investors (IDFC Consortium) have agreed to restructure their existing investment in GMR Energy Limited (GEL), the company in a release said.

These Investors had invested Rs 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, it added.

The company said: Subject to satisfaction of conditions precedent, GMR Infrastructure Limited (GIL) will issue CCPS worth Rs 788.8 crore to Temasek and Rs 347.8 crore to the IDFC Consortium through a preferential allotment.

The residual investment of the Investors in GEL will continue, it stated.

"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," GMR Group Chairman G M Rao said.

Commenting on the restructuring Satish Mandhana, Managing Partner & Chief Investment Officer at IDFC Alternatives said "We look forward to a successful IPO of GEL in near future."