MUMBAI (Reuters) – Indian conglomerate GMR Group aims to raise $100 million in private equity for its power business, a top official said on Monday, adding to $515 million it had collected this month.
Bangalore-based GMR, which builds and manages power plants, airports and roads, is talking to firms for the additional funding and hopes to complete the deal in up to 1-½ months, Group Chief Financial Officer Subbarao Amarthaluru said.
The group is expanding its Indian power capacity to 5,500 megawatts from 823 megawatts at an estimated cost of 300 billion rupees ($6.7 billion), and is building road projects worth 50 billion rupees, he said.
Unlisted GMR Energy, the power arm of the group, had raised $200 million in private equity from Singapore’s Temasek Holdings [TEM.UL] in early April.
“As part of the private equity of GMR Energy another $100 million we are planning to raise,” Amarthaluru told Reuters.
The group, whose projects include renovating and running airports in New Delhi and Istanbul, has been raising funds for its ventures. Last week, flagship GMR Infrastructure (GMRI.BO) raised $315 million from share sale to institutions. [ID:nSGE63F0AV]
The funds raised through PE deals and share sale would be used over the next three years for ongoing projects, Amarthaluru said.
Shares in GMR Infrastructure (GMRI.BO), which has a market value of $5.2 billion, were trading down 4.6 percent at 60.20 rupees by 0605 GMT in a weak Mumbai market .BSESN that fell 1.4 percent. ($1=44.6 Indian Rupees)
By Ketan Bondre and Rajesh Kurup
(Editing by Ranjit Gangadharan)