/press-releases
  • GMR Energy Ltd. allots 30 percent stake against receipt of USD 300mn INR 2000 Cr approx. from Tenaga Nasional Berhad largest electricity utility in Malaysia
  • Enables significant deleveraging through reduction of Corporate debt
  • Creation of a strong platform well poised to capitalize on future growth opportunities in the Power sector

GMR Energy Limited a subsidiary of GMR Infrastructure Ltd today announced allotment of 30 percent stake to Tenaga Nasional Berhad, Malaysia for a cash consideration of USD 300mn, implying an Equity value of USD 1bn INR 6665 Cr approx.. GEL and TNB had announced this  strategic partnership  in May 2016 and the allotment of shares marks the completion of this landmark transaction in the Power sector.

Resultant shareholding of GMR Energy

GMR Infrastructure and its associates                                                              52.14 percent
Tenaga Nasional Berhad                                                                                        30.00 percent
Private Equity investors Temasek, IDFC, etc)                                              17.86 percent

GEL now has a diversified portfolio of coal based, gas based and renewable Hydro and Solar power assets having total capacity of 4630 mega watt. The portfolio comprises of operating capacity of 2300 mega watt and pipeline capacity of 2330 mega watt.

With the rich experience that TNB brings in, GEL would be well poised to pursue avenues for growth in future and create further value for all stakeholders.

Through this investment, GMR Infrastructure continues to:

  • Reduce its Corporate debt on an ongoing basis thus strengthening its balance sheet,
  • Attract foreign capital both equity and debt
  • Demonstrate the strength of its underlying businesses and its attractiveness to various stakeholders

Commenting on the investment completion, Mr GBS Raju, Chairman, GMR Energy Ltd said: “We are pleased to welcome on board Tenaga Nasional Berhad as our strategic partner. This once again re emphasises GMRs commitment and ability to successfully execute strategic partnerships to create value for all its stakeholders. This would provide a renewed impetus to our Energy business and result in a stronger balance sheet enabling the company to capitalise on future growth opportunities. Indeed, coming as it does, in the wake of Government reforms, the investment from Tenaga Malaysia heralds the attractiveness of the Indian Energy sector to the foreign investors.”

This Foreign Direct Investment from Tenaga Nasional Berhad is the first of its kind in the Indian power sector and represents the underlying strengths of the industry inspite of the headwinds being faced over the last few years. The transaction is also expected to have a cascading effect on the Indian power sector and pave the way for more foreign investments.

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For Further Information, please contact:

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  • Yuvraj Mehta
  • Ritesh Mehta
  • Group Head & VP – Corporate Communications
  • Manager - Corporate Communications

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