GMR Energy, a subsidiary of GMR Infra, is known to be raising $100 million (Rs 450 crore) from IDFC Private Equity, sources say. This deal is expected to be closed in the next few weeks.
GMR Energy holds the power sector portfolio of GMR Infrastructure, which has interests in airports, roads and urban infrastructure, including special economic zones. An IDFC spokesperson refused to comment on the development, while GMR said they did not comment on speculative matters.
GMR Energy has planned to enhance its installed generation capacity from the current 808 Mw to 6,500 Mw over the next three to four years. “This requires significant capital investment to fund its expansion plans in the energy business,” the company had earlier said.
It has already achieved financial closure and fuel linkages for the 1,050-Mw GMR Kamalanga power project in Orissa and the 600-Mw Emco Energy in Warora, Maharashtra. In addition, GMR is also developing a 1,200-Mw, coal-based power project in Chhattisgarh, and a 1,320-Mw power project in Shahdol, Maharashtra. GMR Energy is also expanding its 370-Mw, gas-based power project at Vemagiri by 760 Mw. The company also has interests in five hydro power projects at Nepal, Himachal Pradesh and Arunachal Pradesh.
This is the second round of equity raising by GMR Energy. Last month, the company had raised $200 million from Singapore-based investment company Temasek. Temasek’s wholly-owned subsidiary, Claymore Investments, Mauritius, infused capital through a structured paper compulsorily convertible into equity.
Analysts say many power companies which had slowed their plans in recent years are reviving these now. “Projections say that demand for power will grow by 7.5 per cent in the next four-five years. Peak power deficit in electricity is 11-12 per cent and this will remain so for the next 7-8 years. Other companies like JSPL and Sterlite are also looking to raise funds for their power businesses,” says Rupesh Sankhe, Analyst, Angel Broking.
