PE-backed GMR Energy shelves IPO

The decision comes less than month after the firm - a unit of GMR Infrastructure (GMRI), which is in turn the flagship business GMR Group - filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India.

GMRI declined to give an explanation for the withdrawal, citing "various business reasons."

The IPO would have allowed IDFC and Temasek to make a partial exit. Proceeds from the offering would also have been used by GMRE to repay debt and fund equity contributions to two power projects.

In February, GMR Group, Temasek, and a consortium of investors led by IDFC agreed to restructure their investments in GMR Energy by purchasing INR11.4 billion ($183 million) in convertible preference shares in GMRI with INR7.9 billion and INR3.5 billion in shares issued to Temasek and the IDFC consortium, respectively, via a preferential allotment.

Both investors - which had previously invested INR13.9 billion in convertible preference shares in GMRE in 2010 - retain a residual investment worth INR2.58 billion in GMRE. GMRE has about a dozen subsidiaries, including GMR Power Corp, Vemagiri Power Generation, EMCO Energy and GMR Kamalanga Energy.

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• Topics
• South Asia
• Infrastructure
• Exits
• India
• energy
• Infrastructure
• Temasek Holdings
• IDFC Private Equity
• IPO
• Exit