GMR seeks another $100-mn PE funding

Bangalore-based GMR group is planning to raise an additional $100 million (over Rs 447 crore) from a group of private equity companies, led by Singapore-based Temasek Holdings, to fund its expansion plans.

GMR had raised $200 million from the same group of investors early this month and the group flagship company, GMR Infrastructure, raised $315 million (Rs 1,400 crore) through a qualified institutional placement (QIP) last week.

GMR requires close to Rs 8,000 crore as equity contribution to fund its expansion plans — mainly in power and road projects, said A Subbarao, Group Chief Financial Officer of GMR.

The Group has interests in businesses like urban infrastructure, airport and road development, power generation and agri-business.

“With additional investments from the private equity groups, we will have adequate funds required for the next two-three years,” he said.

With another $100 million promised by Temasek, GMR has been able to raise over Rs 2,750 crore in the past four-five weeks. It has already put in over Rs 1,000 crore as equity and has a cash balance of another Rs 1,000 crore, said GMR officials.

Subbarao said Temasek’s investment in GMR Energy would be through preference shares, convertible as equity during the initial public offer (IPO).

Preference shares are special equity security that resemble the properties of both an equity and a debt instrument, but lack voting rights to holders.