Subsidiary of GEPL Signs 3 Major Deals For Divestment Of Stressed Assets To Synergy Investments, Including 79.86 per cent Stake Sale In Bajoli Holi Hydropower

The company has an energy portfolio of over 3,000 MW installed capacity with a diversified fuel mix spread across India.

GMR Power and Urban Infra Limited ("GPUIL" or "Company") announced that GMR Energy Limited ("GEL"), a wholly owned subsidiary of the Company, and GMR Generation Assets Limited ("GGAL"), a subsidiary of the Company, have signed a framework agreement with Synergy Investments Holding Limited ("Synergy") for the divestment of their stakes in non-operating and stressed assets. This decision follows their intimation dated March 31, 2025, regarding reaching a settlement with the lenders of GMR Rajahmundry Energy Limited ("GREL").

The divestment involves the following:

• GEL will transfer 79.86 per cent of the equity shares of GMR Bajoli Holi Hydropower Private Limited ("Bajoli Holi") in two tranches: 70 per cent in the first tranche and 9.86 per cent in the second tranche.
• GMR Group entities will transfer 100 per cent of the compulsorily convertible debentures issued by Bajoli Holi to Synergy. Bajoli Holi is undertaking a 180 MW hydro-electric power project.
• GEL will transfer 51 per cent of the equity shares of GMR Vemagiri Power Generation Limited ("Vemagiri") to Synergy. Vemagiri owns a 388 MW natural gas-based combined cycle power plant.
• GGAL will transfer 51 per cent of the equity shares of GMR Rajahmundry Energy Limited ("GREL") to Synergy, upon completion of the proposed One-Time Settlement ("OTS") with lenders. GREL owns a 768 MW natural gas-based combined cycle power plant.  The GREL and Vemagiri power plants have been non-operational since 2016.

The consolidated consideration for the transfer of securities under the Framework Agreement is Rs 653 crores, subject to net working capital adjustments.

The transaction is expected to be completed on or before September 30, 2025, or a later mutually agreed date. This transaction will enable the Company to meet the proposed OTS with the lenders of GREL, reduce debt by approximately Rs 4400 crores, and spin off non-operational gas plants and stressed assets.

GMR Power and Urban Infra Ltd opened strong on Friday, April 11, 2025, at Rs 116.00, slightly above the previous close of Rs 114.55. The stock showed positive momentum throughout the session, touching an intraday high of Rs 119.20 and a low of Rs 114.00. Overall, the stock ended the day at Rs 116.90, up 2.05 per cent.

GMR Power and Urban Infra Limited (GPUIL) is a listed infrastructure company of the GMR Group, which has been a pioneer with a strong track record in the Energy, Urban Infrastructure, and Transportation sectors. The company has an energy portfolio of over 3,000 MW installed capacity with a diversified fuel mix spread across India. As part of its growth (Energy 2.0) strategy aligned to the developing power sector landscape, GPUIL with renewed focus on smart and green energy, has now entered into new age industry opportunities including Smart Meters, Smart Mobility (EV charging infrastructure), and development of Renewable Energy portfolio. It is also developing around 1,000 MW of clean energy projects in India and Nepal, so as to contribute to a sustainable future.

 Investors should keep an eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.