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GMR Infra to raise $100 mln in energy unit

GMR Infrastructure will announce a $100 million private equity investment in its energy unit in a week, a senior company official said, without elaborating.

The private equity deal in the energy unit GMR Energy should be closed this week and there was no plan to list the unit this fiscal, Group Chief Financial Officer Subbarao Amarthaluru told Reuters over the telephone on Tuesday.

GMR Energy, which has an installed capacity of 800 megawatts and plans to increase it to 5,500 megawatts, raised $200 million in private equity from Singapore state investor Temasek Holdings last month.

GMR Infrastructure also raised $315 million from a share sale to institutions last month.

On Monday, GMR Infrastructure's board approved a proposal to raise 50 billion rupees through issue of shares and bonds, but Amarthaluru said there was no immediate plan to raise funds, and the resolution was just enabling in nature.

“For all existing projects for the next two years, we have money in bank,” he said.

The company expects to spend 100 billion rupees on capex, including an equity investment of 25-28 billion rupees, in the next two years.

GMR Infra on Monday reported a 77 percent rise in Jan-March net profit at 730.5 million rupees on a rise in air traffic and tax reversal.

However, revenue fell 15 percent to 11.25 billion rupees as a 235 mw power plant was shut down for relocation to Kakinara in Andhra Pradesh.

The company's revenue and profit would get a boost in 2010/11 as the Kakinara power plant resumes operation in June, air traffic improves and a new terminal opens at Delhi airport, Amarthaluru said.

The engineering and construction business too will grow but no new road project will add to the company's revenue this fiscal, he said.

Shares in GMR Infrastructure fell 4.74 percent to 54.30 rupees in the Mumbai market that fell 2.71 percent.

Source: Reuters

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