GMR sells stake in Chhattisgarh power plant to Adani Power for Rs 3000 cr

NEW DELHI: GMR Infrastructure Ltd on Thursday announced signing of agreement with Adani Power Ltd for sale of entire stake of 47.62% in GMR Chhattisgarh Energy Ltd (GCEL) to Adani Power for an estimated value of Rs 3000 crore.

Bankers to the project had opted for change in management of the stressed plant held by GMR Generation Assets Ltd, a wholly owned subsidiary of GMR Infrastructure, an official statement said.

Lenders followed a detailed bidding process and selected APL as the final bidder. GCEL has received 100% approvals of all lenders for implementation of the resolution plan, it said.

"Implementation of the resolution plan will lead to a significant deleveraging for the GMR Group,"it added.

GCEL had an outstanding debt of Rs 5,926 crore as on March 31, 2019. The statement said GIL’s profitability is expected to improve significantly considering the company's consolidated profit for FY2019 was adversely impacted by Rs 516 crore on account of Chhattisgarh Power Plant.

The corporate guarantees to the extent of Rs 892 crore furnished by GMR Group companies - GMR Energy Ltd, GGAL and GMR Power Corporation Ltd shall be released.

Resolution of two stressed assets-- GMR Rajahmundry Energy Ltd (GREL) in May 3 and GCEL-- highlights GMR Group’s commitment towards its objective of deleveraging and de-risking the balance sheet, the statement said.

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