In this regard, GMR Energy, a wholly-owned subsidiary and GMR Generation Assets Ltd., a subsidiary, have signed a framework agreement with Synergy Investments Holding Ltd. to divest stake in:
- GMR Bajoli Holi Hydropower Pvt. Ltd., a company undertaking a 180 MW hydro-electric power project.
- GMR Vemagiri Power Generation Ltd., a company that owns a 388 MW natural gas-based combined cycle power plant
- and GMR Rajahmundry Energy Ltd., a company that owns a 768 MW natural gas-based combined cycle power plant.
As per this framework agreement:
GMR Energy will transfer 79.86% stake in Bajoli Holi in two tranches, and the relevant GMR Group entities will transfer 100% of the compulsorily convertible debentures (CCDs) issued by Bajoli Holi, to Synergy.
Post this, GMR Energy will transfer 51% stake in Vemagiri to Synergy.
Lastly, GMR Generation Assets will transfer 51% of the equity shares of GMR Rajahmundry Energy Ltd. to Synergy, upon completion of the proposed one-time settlement.
The GMR Energy and Vemagiri power plants have been non-operational due to non-availability of affordable natural gas to operate the plants, GMR Urban said in its exchange filing.
The consolidated consideration for the transfer of securities post the completion of the transaction as per the agreement is ₹653 crore, subject to net working capital adjustments. These transactions are supposed to be completed on or before September 30, 2025, or at a later date as mutually agreed upon by the parties in the transaction.
“These transactions will enable the company to meet the proposed one-time settlement with lenders of GMR Rajahmundry Energy Ltd. and de-lever the balance sheet by nearly ₹4,400 crore and spin-off the non-operational gas plants and stressed assets of the GMR Group. This will further improve the company’s bottom-line,” GMR Urban said.
Synergy is owned by a private equity fund managed by Synergy Capital, a strategic investment manager and advisor with offices in the UAE, Singapore and India. Synergy Capital focuses on the industrial and infrastructure sectors globally.
“This transaction will help us strengthen the financial position of the company due to reduction of liabilities and is consistent with our “Asset Light Asset Right” strategy,” said Srinivas Bommidala, the Managing Director of GMR Power.
Shares of GMR Power ended 2.3% higher last Friday at ₹117.1. The stock has risen 17% in the last one month, trimming its 2025 losses down to 8%.
