BGR Energy Systems Limited , a prominent player in the energy sector, has received a demand order from the Assistant Commissioner, Bhubaneswar Division, for excess Input Tax Credit (ITC) claims. The order, which pertains to the financial year 2022-23, comes under Section 73 of the CGST Act 2017 and OGST Act, 2017.

Demand Details

The demand order, dated October 31, 2025, outlines the following key points:

The excess ITC amount is broken down as follows:

Partial Relief

It's worth noting that the adjudicating authority has partially accepted BGR Energy Systems' defense. The demand of Rs. 64,21,696 for the financial year 2021-22 has been dropped after verification showed no excess ITC was availed for that period.

Company's Response

BGR Energy Systems plans to contest the confirmed demand. The company has stated its intention to file an appeal before the Appellate Authority against the order.

Regulatory Compliance

This disclosure has been made by BGR Energy Systems Limited in compliance with Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has promptly informed both the National Stock Exchange of India Limited and BSE Limited about this development.

As the matter is now subject to appeal, stakeholders and investors will be keenly watching for further developments and their potential impact on the company's financial position.

GMR Energy has successfully raised Rs 1,600 crore through a five-year non-convertible debt instrument, priced at a substantial 14.85% coupon rate. This high-yield offering has attracted notable investors, including Allianz Global, Trust, and DSP Finance.

Debt Issuance Details

The coupon rate of 14.85% is more than double the existing risk-free rate for comparable duration instruments, reflecting the perceived risk and market conditions. The proceeds from this debt issuance will serve two primary purposes:

1. Partial repayment of existing loans
2. Extension of intra-group lending

Investor Interest and Secondary Market Plans

The high-yield nature of the debt has garnered significant investor attention. Some investors are reportedly planning to offload portions of the acquired debt in the secondary market, targeting large foreign banks and family offices as potential buyers.

Factors Influencing the High Cost

The elevated coupon rate can be attributed to several factors:

• The holding company structure of GMR Energy
• Reduced interest from foreign banks in thermal power producers

GMR Group's Increasing Stake

Concurrent with this debt raise, the GMR Group has been actively increasing its ownership stake in GMR Energy:

• The group's stake has risen from 58.00% to nearly 87.00%
• This increase follows the acquisition of Tenaga Nasional's 29.00% stake
• A deal has been signed for Temasek's 12.00% stake, which will push GMR Group's ownership to almost 99.00%

GMR Energy's Power Assets

The company operates four power assets, including:

• GMR Kamalanga: 1,050 MW thermal power plant
• GMR Warora: 600 MW thermal power plant

GMR's Airport Business Fundraising

It's worth noting that GMR's airport business, separate from the energy division, has also engaged in significant fundraising:

• Raised Rs 6,000 crore across two tranches
• First tranche priced at 10.35%
• Second tranche priced at 10.50%

This debt issuance by GMR Energy highlights the company's efforts to manage its financial structure and the continued investor interest in high-yield instruments within the Indian power sector. The substantial coupon rate also underscores the current challenges and risk perceptions associated with thermal power producers in the market.