GMR Energy Limited, subsidiary of GMR Infrastructure Limited, has decided to withdraw a proposed initial public offer (IPO) after a month of filing draft red herring prospectus (DRHP) with securities market regulator SEBI.
In a statement to BSE today, GMR Infrastructure Ltd has informed that due to various business reasons, GMR Energy Limited, along with the selling shareholders, have withdrawn the DRHP filed with the Securities and Exchange Board of India (SEBI).
GMR Energy was seeking to raise Rs 1,450 crore ($242 million), through a fresh issue of shares besides an offer for sale by the private equity investors. Private Equity investors such as Temasek, IDFC Alternatives and Ascent Capital were looking to part exit in the IPO.
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The proposed amount was supposed to be used for equity funding in projects such as 1,050 MW (Phase I) Kamalanga Power Plant in Orissa and 1,300 MW Chhattisgarh Power Project and also in repayment and reducing the corporate debt of GMR group. The company has a Rs 24,577-debt burden as of now.