GMR Infra up 4% as group sells 70% stake in GMR Energy

GMR Infrastructure rose more than 4 percent in early trade on Tuesday as the GMR group sold its 70 percent stake in GMR Energy.

On March 4, the GMR group entered into a share purchase agreement to sell its 70 percent stake in GMR Energy Singapore (GMRE) to FPM Power Holdings for a total value of Singapore dollar 660 million (USD 533.5 million). FPM Power will invest Singapore dollar 60 million (USD 48.5 million) in GMRE as balanced equity.

"This divestment of our stake results in a profit of Rs 1,356 crore (Singapore dollar 307 million) and releases capital amounting to Rs 1,616 crore (Singapore dollar 366 million)," the GMR group said in its release sent to exchanges.

GMRE is a company formed for the construction, operation and maintenance of a 2X400 MW natural gas fuelled power plant on Jurong Island, Singapore. "The GMRE power plant is nearly 96 percent complete and expected to begin operations by end of 2013," the group said.

GMR Infrastructure Singapore owns 66.4 percent stake in GMRE and 3.6 percent is held by GMR Infrastructure. The balance 30 percent stake in GMRE is held by Petronas, which will continue to stay invested in the project.

FMP Power is a 60:40 joint venture established between First Pacific Company and Meralco Power Gen Corporation, a wholly owned subsidiary of Manila Electric Company.

At 10:32 hours IST, shares of GMR Infrastructure went up 1.86 percent to Rs 19.15 on Bombay Stock Exchange.

In the previous trading session too, the stock jumped 4.74 percent to close at Rs 18.80.