GMR Energy Limited, a key player in India’s power sector, has executed a strategic divestment of its majority stake in a group of stressed energy assets.

These include:

• GMR Bajoli Holi Hydropower Private Limited (Hydro, Himachal Pradesh)

• GMR Rajahmundry Energy Limited (Gas-based, Andhra Pradesh)

• GMR Vemagiri Power Generation Limited (Gas-based, Andhra Pradesh)

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The buyer, Synergy Investments Holding Limited, has acquired the stake as part of a broader restructuring and consolidation strategy.

This transaction is designed to allow GMR Group to execute a one-time settlement with lenders of GMR Rajahmundry Energy Limited, and facilitate a debt reduction of approximately ₹4,400 crore.

Legal Advisors

Shardul Amarchand Mangaldas & Co – Legal Counsel to GMR Group

SAM & Co advised GMR Group on the entire transaction, providing end-to-end legal support on structuring, documentation, regulatory compliance, and lender coordination.

Transaction Team:

• V.R. Neelakantan, Lead Partner

• Samridha Neupane, Partner

• Sourav Naug, Senior Associate

• Siddharth Jain, Senior Associate

• Manmay Mridul, Senior Associate

• Madhvi Vangani, Associate

As GMR’s long-standing legal advisor, SAM & Co’s deep involvement highlights their continued dominance in high-stakes infrastructure and energy transactions across India.

Strategic Significance

This transaction holds multiple strategic benefits for GMR Group:

1. Debt Reduction: Enables significant deleveraging with a ₹4,400 crore debt reduction, improving the Group’s financial profile.

2. Portfolio Restructuring: Allows GMR to focus on core operational assets by divesting non-operational and gas-based stressed projects.

3. Lender Resolution: Supports a smoother One-Time Settlement (OTS) process with banks and financial institutions, improving creditor relations.

4. Hydro Exit Strategy: Divesting from hydro in Himachal Pradesh marks a shift toward more profitable energy verticals and newer-age infra investments.

Broader Market Context

India’s power sector has seen multiple M&A deals in 2024–25, particularly as companies look to clean up their balance sheets. With lenders pushing for resolution of stressed assets under frameworks like IBC and pre-packaged OTS, strategic sales such as this one signal a maturing energy market.

Moreover, infrastructure groups are increasingly looking to exit gas-based power generation, given its underutilization due to erratic fuel supply and economic infeasibility. This move by GMR is in line with a broader energy transition trend that favours renewables, storage, and digital infra.

Why This Deal Matters

• For GMR Group: This is a pivotal move toward deleveraging and simplifying its asset base ahead of future expansions in renewables and airport infra.

• For Investors and Banks: A successful OTS and clean exit boosts confidence in asset monetisation frameworks in India’s power sector.

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Disclaimer

This article is for informational purposes only and does not constitute legal or financial advice. Readers should consult professionals before making decisions.