GMR Infra wing files for Rs 1,450-cr IPO
GMR Energy filed draft red-herring prospectus (DRHP) with SEBI to raise about Rs 1,450 crore by tapping primary markets.GMR Infrastructure has interests in airports, power, roads and EPC businesses.
Mr. Madhu Terdal, group CFO of GMR Infra, says that the company has filed the prospectus as a security step and the SEBI approvals are likely to take around next 2 to 3 months.
GMR energy plans a total IPO size of nearly Rs 1,700 crore of which Rs 1,450 crore will be fresh equity and Rs 250 crore would be in the form of offer sale by existing private equity investors.
The company plans to use half of the net proceeds to fund the equity contribution for its 1,050 MW (Phase I) Kamalanga Power Plant and 1,370 MW Chhattisgarh Power Project.
GMR energy has outstanding loan agreements debt of Rs 2,130.40 crore and plans to use Rs 450 crore as the part of debt repayment. The total gross debt of GMR Energy is Rs 23,432 crore at the end of September 2013.
The listing is mainly to offer the exit chance to private equity investors like Temasek. The IDFC Alternatives and Ascent Capital had invested about Rs 1,395 crore in the firm through compulsorily convertible preference shares (CCPS) in 2010.
These PE investors have recently agreed to restructure their investments in GMR Energy by giving to Rs 1,136.60 crore values of CCPS in GMR infrastructure which are expected to be converted into oridanary equity shares after 18 months.
The company has total working capacity of 2,498 MW and an additional gross capacity of 2,318 MW under construction.
The shares of GMR Infrastructure closed at Rs 21.95 with the increase of 1.39 percent.
Source: The Financial Express
Chhattisgarh Power Project, Draft red-herring prospectus, DRHP, GMR Energy, GMR Infra, GMR Infrastructure, Kamalanga Power Plant, Madhu Terdal, SEBI, Securities and Exchange Board of India, Temasek
