GEL will transfer 51% of the equity shares of Vemagiri to Synergy and GGAL will transfer 51% of the equity shares of GREL to Synergy, upon completion of the proposed OTS.
The GREL and Vemagiri power plants have been non-operational due to the unavailability of affordable natural gas to operate the plants. The transaction is expected to be consummated on or before September 30, 2025, or such later date as mutually agreed by the parties to the transaction.
“This transaction will enable the Company to meet the proposed OTS with the lenders of GREL, deleverage the balance sheet by Rs 4,400 crores and spin off the non-operational gas plants and stressed assets of the GMR Group. This will further improve the bottom line of the Company.”
Synergy is owned by a private equity fund managed by Synergy Capital, a strategic investment manager and advisor with offices in the UAE, Singapore and India.
Srinivas Bommidala, Managing Director of GPUIL, said that due to reasons beyond their control and non-availability of affordable gas, the gas plants have been non-operational since 2016.
“This consolidated divestment will help us to settle our obligations with the lenders of GREL. This transaction gives us the opportunity to spin off the stressed assets from the Group and focus on growing our platform with strong fundamentals.”
Sudhir Maheshwari, Founder and Managing Partner of Synergy Capital, said that Synergy Capital has previously invested in a 165MW natural gas-fired power plant in Thailand and has been actively looking for renewable energy investment opportunities in India.
