GMR Power & Urban Infra Limited, a key player in the power and urban infrastructure sector, has announced a significant corporate action involving its promoter entities. GMR Enterprises Private Limited and GMR Business & Consultancy LLP have pledged shares in the company as collateral for a substantial debt instrument.

Pledge Details

The promoters have pledged shares to secure Rs 300 crore worth of debentures. Here are the key details of the transaction:

Shares Pledged

The pledge involves shares from two promoter entities:

1. GMR Business & Consultancy LLP:

   • Number of shares pledged: 22,000,000
   • Percentage of total share capital: 3.08%

2. GMR Enterprises Private Limited:

   • Number of shares pledged: 14,000,000
   • Percentage of total share capital: 1.96%

Impact on Promoter Shareholding

The total promoter shareholding in GMR Power & Urban Infra Limited stands at 361,426,826 shares, representing 50.56% of the total share capital. With this new pledge, the encumbered shares as a percentage of promoter shareholding have reached 77.19%, which is more than 50% of the promoter shareholding and over 20% of the total share capital.

Utilization of Funds

According to the disclosure, the borrowed amount is intended for personal use by the promoters and Persons Acting in Concert (PACs). The company has confirmed that the funds are not being raised for the benefit of the listed entity.

Security Cover

The security cover for the pledged shares varies between the two promoter entities:

1. For GMR Business & Consultancy LLP:

   • Value of pledged shares: Rs 257.03 crore
   • Security Cover Ratio: 0.86

2. For GMR Enterprises Private Limited:

   • Value of pledged shares: Rs 163.56 crore
   • Security Cover Ratio: 0.55

This corporate action highlights the promoters' move to leverage their shareholding for raising funds, which may have implications for the company's ownership structure and financial strategies going forward.

GMR Power & Urban Infra Limited has seen a significant reduction in its encumbered shareholding, as reported in a recent disclosure. Vistra ITCL (India) Limited, acting in its capacity as both Debenture Trustee and Security Trustee, has released 3.6 crore equity shares of the company from encumbrance.

Key Details of the Share Release

Background and Implications

The released shares were originally pledged as security for the issuance of Non-Convertible Debentures (NCDs). This move significantly reduces the percentage of encumbered shares held by Vistra ITCL, potentially indicating an improvement in GMR Power & Urban Infra's financial position or a partial redemption of the NCDs.

Regulatory Compliance

Vistra ITCL filed this disclosure under SEBI takeover regulations. However, the company noted that this filing was made as a precautionary measure, emphasizing that the primary responsibility for compliance lies with the lender and debenture holders.

Market Impact

While the release of shares from encumbrance is a positive development, investors should note that the company's total equity share capital remains unchanged at 71.48 crore shares. The reduction in encumbered shares could potentially improve market perception of the company's financial health and may impact trading patterns in the short term.

Investors are advised to monitor any further developments or disclosures from GMR Power & Urban Infra Limited, as changes in encumbrance can sometimes precede significant corporate actions or reflect shifts in the company's capital structure.