Investors Led By Idfc Group Sign Agreement To Invest Inr 465 Crores In Gmr Energy
Mumbai, June 03, 2010: GMR Energy Limited ("GEL") has signed a Shareholders' Agreement to raise capital from Investors led by IDFC Group for its energy expansion plans. IDFC Private Equity steered this investment process. The IDFC Group and co-investors, Argonaut Ventures and Ascent Capital have signed a Shareholders’ Agreement to invest INR 465 crores into GEL. The funds from the IDFC Group led investors will support the company in expanding its power generation capacity from 808MW to more than 6,500MW over the next few years. The company has already achieved financial closure and fuel linkages for GMR Kamalanga (1,050 MW capacity, which is being enhanced to 1400 MW and EPC contract for the expansion is finalised with SEPCO, China, who are also the EPC contractors for 1050 MW capacity) and Emco Energy (600MW). Several other projects are also in an advanced development stage.
Mr. G.M. Rao, GMR Group Chairman said, “We are extremely happy to have IDFC Group, Argonaut and Ascent as the shareholders of GEL. Our relationship with the IDFC Group has been sustained over time and we are confident that this relationship will continue to be a mutually gratifying experience for both parties.”
Dr. Rajiv Lall, Managing Director & CEO of IDFC said, "The GMR Group is one of the most dynamic and capable infrastructure developers globally. We are glad to support the Group as it continues to build and deliver world class infrastructure on time." He further added that "The Indian power generation sector represents an attractive investment opportunity given the current supply-demand imbalance. GMR Energy Ltd (GEL) has an experienced team, proven track record in implementing power projects and diversified fuels assured asset portfolio."