GMR Power and Urban Infra Limited Incorporates New Renewable Energy Subsidiary in Karnataka

GMR Power and Urban Infra Limited has announced the incorporation of a new wholly owned subsidiary focused on renewable energy development in Karnataka. The company informed stock exchanges about the formation of GMR Karnataka Renewable Energy-I Limited (GKREL) through its existing subsidiary GMR Energy Limited. New Subsidiary Details GMR Karnataka Renewable Energy-I Limited was incorporated on February 28, 2026, marking the company's continued expansion in the renewable energy sector. The subsidiary has been established with specific focus on developing renewable energy power plants in Karnataka state. Parameter: Details Company Name: GMR Karnataka Renewable Energy-I Limited (GKREL) Incorporation Date: February 28, 2026 Paid-up Capital: Rs. 5 lakh Shareholding: 100% owned by GMR Energy Limited Business Focus: Renewable energy development in Karnataka Financial Structure and Ownership The incorporation involved subscription to 50,000 equity shares of Rs. 10 each through the memorandum of association. GMR Energy Limited, which is itself a wholly owned subsidiary of GMR Power and Urban Infra Limited, holds complete ownership of the new entity. Ownership Structure: Details Direct Owner: GMR Energy Limited (100%) Ultimate Parent: GMR Power and Urban Infra Limited Share Capital: 50,000 equity shares of Rs. 10 each Consideration Method: Subscription to Memorandum of Association Business Objectives and Industry Focus The newly incorporated subsidiary will operate in the renewable energy sector, specifically focusing on generation and transmission of power through renewable resources. GKREL has been established with the primary objective of developing renewable energy power plants in Karnataka state, supporting the group's clean energy initiatives. Regulatory Compliance The company has disclosed that the incorporation does not fall within the purview of related party transactions. No governmental or regulatory approvals are required for this incorporation, and the promoter group companies do not have any interest except for indirect shareholding through the corporate structure. GMR Karnataka Renewable Energy-I Limited is yet to commence business operations and currently maintains its office in India. The subsidiary represents GMR Power and Urban Infra Limited's strategic focus on expanding its renewable energy portfolio in key Indian states. GMR Power & Urban Infra Limited has announced that Infomerics Valuation and Rating Limited has reaffirmed its credit ratings for bank facilities while withdrawing ratings for Non-Convertible Debentures following their complete repayment. The company informed stock exchanges about these rating actions on February 26, 2026, pursuant to Regulation 30 of SEBI Listing Regulations. Rating Reaffirmation and Withdrawal Details Infomerics has maintained its confidence in the company's creditworthiness by reaffirming existing ratings across bank facilities. The rating agency withdrew NCD ratings at the company's request after full repayment of the debentures. Instrument/Facility Amount (Rs. Crore) Current Rating Previous Rating Rating Action Long Term Bank Facilities 380.00 IVR BBB-/Stable IVR BBB-/Stable Rating Reaffirmed Non-Convertible Debentures 0.00 (Reduced from Rs. 24.65) - IVR BBB-/Stable Rating Withdrawn Short Term Bank Facilities 5.30 IVR A3 IVR A3 Rating Reaffirmed Total 385.30 Facility Structure and Lender Details The company's rated facilities comprise both long-term and short-term non-fund based arrangements with established banking partners. The long-term facility of Rs. 380.00 crore consists of Bank Guarantees from IDBI Bank with tenor exceeding one year. The short-term facility worth Rs. 5.30 crore involves Bank Guarantees from Union Bank of India with tenor less than six months. NCD Repayment and ISIN Extinguishment The Non-Convertible Debentures with ISIN INE0CU607015, previously rated at the outstanding balance, have been fully repaid by the company. Axis Trustee, acting as Debenture Trustee, issued a No Objection Certificate for extinguishment of the ISIN on July 17, 2025, confirming the complete settlement of the debenture obligations. Rating Validity and Surveillance Framework The reaffirmed ratings remain valid for one year from the previous surveillance rating communication dated March 03, 2025. Infomerics reserves the right to conduct periodic surveillance and review of the ratings, with at least one review mandated annually. The rating agency has established monitoring requirements including monthly No Default Statements and quarterly performance data submissions. Rating Implications The rating reaffirmation reflects the company's maintained credit profile and ability to service its financial obligations. The IVR BBB-/Stable rating indicates moderate degree of safety regarding timely servicing of financial obligations with moderate credit risk. The IVR A3 rating for short-term facilities suggests moderate degree of safety for timely payment obligations, carrying higher credit risk compared to higher-rated categories but maintaining acceptable risk levels for short-term commitments. We’re building Scanx - to help you express your trading & investing idea, to help you analyse the markets better. Stock Markets are the true indicator of the growth of any country's economy. We are bullish on India, we are bullish on India's prospects to be one of largest economies of the world. We believe that Stock Markets provide an unique opportunity for all Indians to participate in the growth story of India. We are enabling the same for Indians. As financial services are becoming more accessible, there is now a large set of Indians today who are financially aware and literate. They value time and seek high quality products & services. 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