GMR Group Divests Its Chhattisgarh Power Plant
GMR Infrastructure Limited (GIL) wishes to announce the signing of definitive Share Purchase Agreement with Adani Power Limited (APL) for the sale of the entire stake 47.62% in GMR Chhattisgarh Energy Ltd. (GCEL), held by its wholly owned subsidiary GMR Generation Assets Limited (GGAL).
The Consortium Lenders of GCEL adopted the “Change in Management” as a Resolution Plan (RP) in accordance with the Guidelines issued by Reserve Bank of India. Lenders followed a detailed bidding process and selected APL as the final bidder. GCEL has received 100% approvals of all Lenders for implementation of the RP.
Implementation of RP will lead to a significant deleveraging for the GMR Group. GCEL had an outstanding debt of INR 5,926 Crore as on March 31, 2019. In addition, GIL’s profitability is expected to improve significantly considering GIL consolidated profit for FY2019 was adversely impacted by INR 516 crore on account of Chhattisgarh Power Plant. Further, the Corporate Guarantees to the extent of INR 892 Crore furnished by GMR Group companies - GMR Energy Ltd, GGAL and GMR Power Corporation Ltd shall be released.
Successful resolution of two stressed assets- i) GMR Rajahmundry Energy Ltd (GREL) - concluded bilateral implementation of RP on May 3, 2019, and ii) now GCEL, highlights GMR Group’s commitment towards its objective of deleveraging and de-risking the Balance Sheet.