GMR Power and Urban Infra Limited has announced the incorporation of a new wholly owned subsidiary focused on renewable energy opportunities as part of its strategic expansion into eco-friendly offerings. The company informed stock exchanges about the formation of GMR Andhra Pradesh Renewable Energy-I Limited (GAPREL) through its existing subsidiary GMR Energy Limited.

Corporate Structure and Ownership

The new subsidiary has been established with a clear ownership structure designed to support renewable energy initiatives. GMR Energy Limited, which is already a wholly owned subsidiary of GMR Power and Urban Infra Limited, has incorporated GAPREL as its wholly owned subsidiary.

Business Focus and Objectives

GAPREL has been incorporated specifically to explore business opportunities in the renewable energy space as part of GMR Power's strategy to grow its eco-friendly offerings. The subsidiary's primary business objectives include:

• Generation of power through renewable resources
• Transmission of power through renewable resources
• Exploration of renewable energy business opportunities

The company noted that GAPREL is yet to engage in active business operations, indicating this is a strategic move to position for future renewable energy projects.

Regulatory Compliance

The incorporation has been disclosed in accordance with Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that:

• The incorporation does not fall within the purview of related party transactions
• No governmental or regulatory approvals are required for this incorporation
• The promoter/promoter group/group companies have no interest except that GAPREL is a wholly owned subsidiary of GMR Energy Limited

Financial Structure

The subsidiary has been established through subscription to the Memorandum of Association, with GMR Energy Limited subscribing to 50,000 equity shares of Rs. 10 each. This structure provides a foundation for future capital requirements as the subsidiary develops its renewable energy business.

The incorporation represents GMR Power and Urban Infra Limited's strategic expansion into renewable energy through a dedicated subsidiary structure, positioning the group to capitalize on opportunities in India's growing renewable energy sector while enhancing its eco-friendly business portfolio.

GMR Power & Urban Infra Limited has disclosed comprehensive details regarding the encumbrance of promoter shares under Regulation 30, providing clarity on the pledge structure and security arrangements for new debenture facilities.

Promoter Shareholding and Encumbrance Details

GMR Estate Management Private Limited, the promoter entity, holds a significant stake in the listed company with detailed encumbrance metrics disclosed in the regulatory filing.

Extension of Existing Pledge Structure

The encumbrance represents an extension of existing pledge arrangements rather than creation of new pledges. The modification involves the same 12 crore shares previously pledged, now securing additional facilities.

New Debenture Facility Specifications

The additional facility involves secured debentures issued by GMR Sports Venture Private Limited, with specific characteristics and security arrangements.

Security Cover and Asset Valuation

The security arrangement demonstrates adequate asset coverage for the encumbered amount, with detailed valuation metrics provided in the disclosure.

Associated Entities and Structure

The encumbrance arrangement involves multiple group entities and is structured for the benefit of the listed company rather than personal use by promoters.

The disclosure was signed by Ravi Majeti, Director of GMR Estate Management Private Limited, and filed from Delhi, demonstrating compliance with regulatory requirements for substantial share encumbrances exceeding prescribed thresholds.