GMR Power & Urban Infra Limited, a prominent player in the power and urban infrastructure sector, has disclosed significant share encumbrance details by its promoter, GMR Enterprises Private Limited. The encumbrance represents a substantial 77.19% of the promoter's shareholding, surpassing both the 50% threshold of promoter holding and 20% of the company's total share capital.

Promoter Shareholding and Encumbrance Details

GMR Enterprises Private Limited, the promoter, holds a total of 361,426,826 shares, which accounts for 50.56% of the company's total share capital. The recent encumbrance has raised eyebrows in the financial community due to its significant scale.

Specific Encumbrance Transaction

A notable transaction within this encumbrance involves the creation of a specific pledge of 9.5 million shares, representing 1.33% of the total share capital. This pledge was executed in favor of Arka Fincap Limited, a Non-Banking Financial Company (NBFC).

Financial Implications

The pledge is associated with an existing facility valued at ₹263.32 crore, against which an amount of ₹100.00 crore has been involved. This arrangement provides a security cover ratio of 2.63, indicating a significant cushion for the lender.

Purpose of Encumbrance

According to the disclosure, the borrowed amount is intended for personal use by the promoters. This revelation has sparked interest among investors and market analysts, who are closely monitoring the implications of such a substantial encumbrance on the company's future prospects.

Other Entities Involved

The agreement also mentions GMR Infra Projects Private Limited as another entity involved in the transaction, though its specific role is not detailed in the available information.

Market Impact

The disclosure of such a significant encumbrance by the promoter group is likely to draw attention from various stakeholders, including investors, regulators, and market analysts. The impact on GMR Power & Urban Infra's stock price and market perception will be closely watched in the coming days.

Regulatory Compliance

It's worth noting that this disclosure aligns with the regulatory requirements set by the Securities and Exchange Board of India (SEBI), ensuring transparency in promoter actions that could potentially influence the company's stock performance.

As the situation unfolds, market participants will be keenly observing any further developments or clarifications from GMR Power & Urban Infra Limited regarding this substantial share encumbrance.

In a significant development for GMR Power and Urban Infra Limited (GPUIL), the Supreme Court has dismissed appeals by Distribution Licensees of Haryana and GRIDCO (Grid Corporation of Odisha Ltd.), upholding a crucial ruling on coal allocation. The decision confirms the Appellate Tribunal for Electricity's judgment from December 2019 regarding the proportionate allocation of linkage coal among three state DISCOMs.

Key Points of the Ruling

• The Supreme Court's verdict maintains that GMR Kamalanga Energy Limited (GKEL), a subsidiary of GPUIL, should allocate linkage coal proportionately among its three beneficiary state DISCOMs: Haryana, Bihar, and Odisha.
• This ruling allows GKEL to recover outstanding payments from Haryana Discoms, along with applicable interest as per the Power Purchase Agreement (PPA) terms.
• The judgment resolves a long-standing dispute, as Haryana Discoms had been making only partial payments for additional coal costs while the matter was pending before the Supreme Court.

Implications for GMR Kamalanga Energy

The court's decision is expected to have significant financial implications for GKEL:

1. Recovery of Dues: GKEL can now recover the balance amount of additional coal costs from Haryana Discoms, which had been partially withheld during the legal proceedings.
2. Interest Recovery: The company is entitled to receive applicable interest on the outstanding amounts as per the PPA terms.
3. Operational Clarity: The ruling provides clear guidelines on the allocation of linkage coal, potentially streamlining GKEL's operations and financial planning.

Corporate Disclosure

GPUIL, in compliance with SEBI regulations, has informed the stock exchanges about this development. The company clarified that while the judgment pertains to its subsidiary GKEL, GPUIL itself was not directly involved in the case.

The full text of the Supreme Court's judgment is available on the official Supreme Court website for public reference.

This ruling marks a significant milestone in the power sector, particularly for companies with multiple state DISCOMs as beneficiaries. It sets a precedent for the equitable distribution of resources and cost allocation in similar arrangements across the industry.