Singapore state investor Temasek Holdings on Friday agreed to invest $200 million (around Rs 900 crore) in the power business of GMR Infrastructure that would help the Indian firm expand its generation capacity.
Temasek, through a fully owned unit, will subscribe to compulsorily convertible securities of GMR Energy Ltd (GEL), the two firms said in a statement. However, they did not disclose how much stake the investor will take.
GMR Energy, which houses the power projects of the GMR group, currently has installed capacity of 808 mega watts, with several other projects at an advanced stage of development.
“GEL plans to enhance its installed generation capacity to more than 6,500 MW over 3 to 4 years, thus necessitating significant capital investment to fund its expansion plans,” GMR said in a statement.
A top group official told Reuters last November GMR was in talks with several investors for possible stake sales in its power and infrastructure businesses.
In a separate statement, GMR Infrastructure said its board has approved raising Rs 500 crore ($110 million) through debentures.