Advising GMR Energy on the sale of shares in three power plant Special Purpose Vehicles (SPVs) is undertaken by SAM.
The GMR Group has taken a significant step towards financial restructuring and asset management with the execution of a one-time settlement with the lenders of GMR Rajahmundry Energy Limited. This settlement was made possible by a strategic divestment of stressed assets, including majority stakes in power plants, in a cross-border transaction involving India and the UAE.
Shardul Amarchand Mangaldas & Co served as the legal advisor for the GMR Group in this transaction. V.R. Neelakantan, Partner at Shardul Amarchand Mangaldas & Co, led the transaction advisory team, which also included Partners Samridha Neupane, Sourav Naug, Siddharth Jain, Manmay Mridul, and Madhvi Vangani.
The transaction saw the sale of majority stakes in power plants such as GMR Bajoli Holi Hydropower Private Limited, GMR Rajahmundry Energy Limited, and GMR Vemagiri Power Generation Limited to Synergy Investments Holding Limited. This sale enabled the GMR Group to reduce its debt by INR 4,400 crore and spin off non-operational gas-based plants and other stressed assets from its portfolio, improving overall asset quality and financial health.
The transaction does not involve the acquisition of assets by Synergy Investments Holding Limited, but rather the sale of a majority stake. The recipient of the majority stake is Synergy Investments Holding Limited.
The GMR Group plans to continue strategically spinning off non-operational gas-based plants and other stressed assets from its portfolio. This transaction is part of a broader strategic plan to restructure the GMR Group's portfolio.
It is important to note that Shardul Amarchand Mangaldas & Co provided legal advice for the GMR Group, not Synergy Investments Holding Limited. The transaction took place between GMR Energy Limited and Synergy Investments Holding Limited.
The transaction involved assets that were previously considered "stressed." The transaction with Synergy Investments Holding Limited is not the only legal matter handled by Shardul Amarchand Mangaldas & Co for the GMR Group.
This transaction marks a significant milestone in the GMR Group's journey towards financial restructuring and asset management. As the Group continues to execute its strategic plans, it is expected that more such transactions will follow, further improving the Group's financial health and portfolio quality.
The GMR Group received legal advice from Shardul Amarchand Mangaldas & Co during the financial restructuring process, which included the sale of a majority stake in power plants to Synergy Investments Holding Limited, reducing debt by INR 4,400 crore and improving the asset quality and financial health of the Group. This transaction is part of the GMR Group's broader strategic plan to restructure its portfolio, focusing on spinning off non-operational gas-based plants and other stressed assets.
%20is%20undertaken%20by%20SAM.){kind=link}