Gammon India to invest up to Rs675 crore in its power subsidiary

Mumbai: Gammon India Ltd on Friday said its board has approved further investment of up to Rs.675 crore in its wholly-owned subsidiary Gammon Power Ltd (GPL).

Gammon India will subscribe up to 2.25 crore equity shares of GPL of Rs.10 each at a price of Rs.300 per equity share, aggregating up to Rs.675 crore, the company said in a BSE filing on Friday.

On Thursday, Gammon India said its board will meet on 2 April to consider a proposal received from an investor for the investment in the company’s engineering procurement and construction (EPC) business.

In November, the company said it will transfer its civil EPC business to its wholly-owned subsidiary Gammon Retail Infrastructure Pvt. Ltd in order to allow potential equity investors to invest in the civil EPC business.

Gammon India has been restructuring its nearly Rs.15,000 crore of debt through the corporate debt restructuring mechanism since September 2013. In December 2015,Mint reported that lenders to Gammon India will be converting Rs.245 crore worth of debt to a 60.10% equity stake under strategic debt restructuring norms.