The Manipal Group-headquartered in Bangalore, which runs a chain of hospitals and education institutions, led by billionaire Ranjan Pai reportedly worth Rs 8,000 crore, may pick up stake in Bangalore-based publicly-held GMR Infrastructure. Skyron Eco Ventures, a group company of Ranjan Pai, is expected to land close to a 2.5 per cent stake in GMR Infrastructure as and when Skyron decides to convert its CCPS (compulsorily convertible preference shares) in GMR Infrastructure within the next 17-18 months.
Skyron Eco Ventures, will be shortly allotted a little over 2 million CCPS worth close to Rs 210 crore and after the conversion, Ranjan Pai will emerge as the second largest private equity investor after Singapore-based sovereign private equity fund Temasek.
According to a disclosure by GMR Infrastructure, it is issuing these CCPS to Skyron, Temasek and two other investors, in an effort to infuse capital into its group companies as well as to consolidate its shareholding in its group companies. This move to offer CCPS to a group of investors by GMR Infrastructure has been arrived after protracted negotiations with investors who had exposure GMR Energy Limited (GEL) - a subsidiary of GMR Infrastructure.
Temasek, IDFC Alternatives and a group of investors had invested Rs 1,395 crore in Compulsorily Convertible Preference Shares in GMR Energy in 2010 and they have now agreed to restructure the terms taking into account the interest of both the parties.
Subject to satisfaction of conditions precedent, GMR Infrastructure, the parent of GMR Energy will issue CCPS worth Rs 788.8 crore to Temasek and Rs 347.8 crore to the IDFC consortium through a preferential allotment.
GMR Infrastructure added that the conversion of CCPS at GMR Infrastructure will not happen now at the present price. The actual conversion will take place 18 months from now at the then prevailing price, as per the Sebi guidelines. The residual investment of the investors in GMR Energy will continue.This move by Ranjan Pai comes at a time when he is aggressively preparing to expand his education and healthcare businesses.
