Axis Bank-led group of lenders approves Adani Power's bid for GMR Chhattisgarh Energy
By INSOL India Editorial Team Posted On : July 15, 2019
Lenders to GMR Chhattisgarh Energy have approved the bid by Adani Power, and the Axis Bank-led consortium of lenders has issued Letter of Intent (LoI) to the bidder. In a statement, GMR Infrastructure on July 4, 2019 said it has entered into a definitive agreement with Adani Power to sell its entire 47.62 per cent stake in GMR Chhattisgarh Energy, held by its wholly-owned subsidiary, GMR Generation Assets Limited.
GMR Chhattisgarh Energy's 1,370 Mw project, which has an outstanding debt of over Rs 5,800 crore, ran into trouble due to the absence of a long-term power purchase agreement (PPA), though it had a short-term agreement with Gujarat. At the group level, GMR would see reduction in debt exposure of equivalent quantum.
Following the transaction, Adani Power will own 100 per cent in the unit as it would buy 52.38 per cent stake from the lenders led by Axis Bank, and the remaining 47.62 per cent from the GMR Group.