GMR Power and Urban Infra Limited — Important, 31-03-2025: Updates

GMR Power and Urban Infra Limited’s associate, GMR Rajahmundry Energy Limited (GREL), has reached a One-Time Settlement (OTS) agreement with its lenders to resolve outstanding debts totaling approximately Rs. 837.7 Cr. This includes Rs. 837.7 Cr in term loans, Rs. 261.4 Cr in Non-Convertible Debentures, and Rs. 940.60 Cr in Cumulative Redeemable Preference Shares. The lender consortium has approved an OTS amount of Rs. 657 Cr for full and final settlement of GREL's liabilities. The company has already made an initial payment of Rs. 165.70 Cr and is expected to pay the remaining amount as per the agreed schedule upon lender re-approval. This proactive move addresses GREL's operational challenges, primarily caused by the ongoing unavailability of affordable natural gas for its 768 MW gas-based Combined Cycle Power Plant in Andhra Pradesh. Investors should monitor the settlement progress as it may impact GMR Power's financial health positively moving forward.