GMR Power and Urban Infra rose 1.83% to Rs 116.60 after its step-down subsidiary completed refinancing of its existing debt at a lower cost.
GMR Power and Urban Infra said GMR Kamalanga Energy (GKEL) has refinanced its outstanding debt of Rs 2,700 crore through a senior loan facility of the same amount. The refinancing enabled the repayment of all existing lenders.Following the transaction, GKEL's average cost of borrowing has declined to about 9.50% per annum from around 12.15% earlier. The cost could further reduce to 9.25% per annum, subject to a credit rating upgrade.
The company estimates interest cost savings of about Rs 72-75 crore during the first full year after refinancing. Management said the reduction in borrowing costs is expected to improve profitability and support long-term financial sustainability.
GMR Power and Urban Infra is a global infrastructure conglomerate with interest in energy, road, smart meter infrastructure and urban infrastructure business sectors in India.
The companys consolidated net profit surged 248.2% to Rs 888.39 crore on 30.8% jump in net sales to Rs 1810.36 crore in Q2 FY26 over Q2 FY25.
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