Bangalore: GMR Energy Ltd announced today (Mar 11, 2004) that they have raised Rs 100 crores of equity from the India Development Fund.

GMR Energy is one of the largest IPP (Independent Power Producer) in South India and currently operates two plants - at Mangalore and Chennai. A third plant is being set up in Vemagiri in Andhra Pradesh. These funds will be used for setting up the new plant. This is the first investment by the India Development Fund, India's largest domestic private equity fund. Luis Miranda, President & CEO, IDFC Asset Management Co Ltd, will join the board of GMR Energy Ltd. Speaking at the occasion, G B S Raju, Director, GMR Energy said, "We have always believed in nurturing healthy relationships with our partners, customers, bankers and the society. We believe that IDF's investment in our companies will certainly foster our growth objectives and create value in the energy sector." Luis Miranda remarked, "We wanted our first investment to be a landmark one. We believe that the GMR Group has built up an excellent business in the energy sector, with two power plants of international standards.

Before it was fashionable to focus on infrastructure, the Group has already stated its commitment clearly to this sector. We are excited to partner the GMR Group with its professional management team and strong leadership of G M Rao and his family." SSKI Investment Banking was the sole advisor for this transaction.