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Follow on Google News | GMR Enterprises in talks to raise around Rs300 croreBy: Mergersindia GMR Enterprises and the promoters own a 60.1% stake in the listed firm, GMR Infrastructure Ltd, stock exchange data show. The GMR Group has three airports in operation, 10 power generation plants with a gross operational capacity of about 4,600 megawatts and eight road projects covering over 600km. GMR Infrastructure is developing two special investment regions. The group also owns the Delhi franchise of the Indian Premier League. Russian investment banking firm VTB Capital Group is one of the parties that the infrastructure group is in talks with, said one of the two people cited earlier, both of whom spoke on condition of anonymity. "They (GMR Enterprises) VTB Capital is looking to fund almost half of the Rs300 crore that GMR Enterprises is looking to raise, said the second of the two people. "VTB Capital will be investing around Rs120-150 crore as part of the first tranche of this round, while the rest may be raised from other investors," he said. GMR Enterprises is raising the structured debt through debentures with a coupon rate of around 8%, having a tenure of three and a half years, he said, adding, "The holding company has long-term debt of around Rs3,100 crore, close to 10% of which is payable in the short term." Long-term debt providers to the company include US private equity firm KKR, Piramal Enterprises Ltd and First Gulf Bank, the company's financial statements filed with the Registrar of Companies (RoC) show. In 2014, GMR Group's holding company had raised Rs1,000 crore in structured long-term debt from KKR and other co-investors, according to a statement on the group's website. "During the course of normal business, the Group is pursuing a variety of activities including fundraising, refinancing, and others. In view of such transactions, Group will be engaging with many parties. We are not in a position to comment on any specific transaction," "We do not comment on client information," The latest round of fund-raising at GMR is part of the ongoing process at the group to deleverage its balance sheet. In May, GMR announced that Malaysia's largest electricity utility, Tenaga Nasional Bhd, was buying a 30% stake in a "select portfolio" of GMR Energy Ltd's assets for $300 million (http://www.livemint.com/ The proceeds from the stake sale will be exclusively used to reduce the company's debt. Read in Detail on - https://mnacritique.mergersindia.com End
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