GMR Restructures Temasek, IDFC Agreement in $183 Million Share Issue

GMR Group, the Bangalore-based infrastructure developer, announced plans last Friday to restructure investments in GMR Energy Limited made by Singapore public investor Temasek Holdings Pvt Ltd and a consortium led by Indian private equity firm IDFC Alternatives Ltd. Subject to satisfaction of conditions precedent, GMR Infrastructure Ltd will issue US$ 183 million worth of compulsorily convertible preference shares (CCPS) to Temasek and the consortium through a preferential allotment.

GMR Infrastructure will issue shares worth 7.89 billion rupees and 3.48 billion rupees to Temasek and the IDFC consortium, respectively. These investors had bought 13.95 billion rupees in CCPS of GMR Energy in 2010, and they will retain their residual investment in the company.

GMR Infrastructure gave clarification on the deal to the Bombay Stock Exchange, explaining that the new CCPS would be converted into equity shares of GMR Infrastructure between September and October, 2015. At the time of conversion, the price would be the higher of the average of the weekly high and low of the closing prices of the equity shares during the 26 weeks or the average of the weekly high and low of the closing prices quoted on a recognized stock exchange during the 2 weeks ending 30 days prior to the conversion date, as per the Securities and Exchange Board of India.

GMR Energy is valued at 60 billion rupees.

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