GMR Power has acquired 1,051,154,500 equity shares of GEL from Power and Energy International (Mauritius), a company incorporated in Mauritius (Tenaga) and a subsidiary of Tenaga Nasional Berhad a company incorporated in Malaysia, for a negotiated consideration of $28.50 million.

The current acquisition consolidates the existing stake of the company in GEL from about 57.76%, held by itself and its subsidiaries, to about 86.90%.

With this complete buy out of Tenaga stake, the shareholders agreement (SHA) with Tenaga stands terminated thereby enabling full consolidation of revenues and earnings of GEL with the company, which till now was being done on an equity method or joint venture accounting.

GEL was incorporated on 10 October 1996 and is engaged in the business of development, operation and maintenance of power projects, power generation, transmission, distribution and trading of electricity, through its subsidiaries. GEL is currently a subsidiary of the company and of its promoter company, GMR Enterprises.

GMR Power and Urban Infra a subsidiary of GMR Enterprises (GEPL) holds expertise in the sectors of Energy, Urban Infrastructure and Transportation. Urbanization has given the country rapid growth and contributing towards this growth, GMR Group ventured into this business sector.

The company reported net loss of Rs 105.29 crore in Q2 FY24 as against with net profit of Rs 1,082.70 crore posted in Q2 FY23. Net sales slipped 60.3% YoY to Rs 627.49 crore in Q2 FY24.

The scrip rose 0.40% to currently trade at Rs 40.11 on the BSE.