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GMR Chhattisgarh Energy Completes Strategic Debt Restructuring

The adoption of SDR scheme would result in lower debt levels thereby improving the project’s long term viability.

Power lines next to a power plant. (Photographer: Prashanth Vishwanathan/Bloomberg)
Power lines next to a power plant. (Photographer: Prashanth Vishwanathan/Bloomberg)

GMR Infrastructure Ltd. rose as much as 5.3 percent after it announced that the consortium of lenders completed the strategic debt restructuring for its unit, GMR Chhattisgarh Energy Ltd.

Of the Rs 8,800 crore total outstanding debt, Rs 2,992 crore has been converted into equity, GMR Infrastructure said in a press release. The lenders now hold 52.4 percent shareholding, and the GMR group holds the balance 47.6 percent in GMR Chhattisgarh Energy.

Post Conversion

  • Project debt: Rs 5,800 crore.
  • Lenders to hold Rs 2,992 crore equity.
  • GMR group to hold Rs 2,721 crore equity.

The debt -to-equity ratio will stand at 1x, and the “lower debt levels would result in improving the long term viability of the project”, the company added.

Shares of GMR Infrastructure rose 4.36 percent to Rs 15.55 as of 9:50 a.m.