GVK POW. & INFRA Share price

Our HistoryThe GVK is a diversified business house with interests in a range of businesses including power roads urban infrastructure bio-science hotels and manufacturing. GVK has promoted or has equity investments in TAJGVK Hotels and Resorts Limited Novopan Indistries Limited GVK Biosciences Private Limited GVK Jaipur-Kishangarh Expressway Private Limited.In recent years the Promoters through our Promoter Group Companies have increasingly focused on the power and infrastructure sector. For further details see "Our Promoters" on page [*] of this Draft Red Herring Prospectus. G.V. Krishna Reddy the Chairman & Managing Director of GVKPIL is a first generation entrepreneur who established the business four decades ago. Our Company was incorporated in the National Capital Territory of Delhi on December 2 1994 as Jegurupadu Operating & Maintenance Company a private company with unlimited liability under the Companies Act 1956. Our Company was converted from a company with unlimited liability to a company with limited liability and consequently the name was changed to Jegurupadu Operating & Maintenance Company Private Limited on April 20 2005. Subsequently our Company was converted from a private limited company to a public limited company on May 19 2005 and the name was changed to Jegurupadu Operating & Maintenance Company Limited. Thereafter the name of the Company was changed to GVK Power & Infrastructure Limited on July 13 2005.Our Company is the holding company of the power businesses of the GVK and provides operations and maintenance services to its power assets. We have an equity stake in GVK companies engaged in the generation of electricity in the State of Andhra Pradesh namely GIL our Subsidiary and GPL our Associate Company. We are also the O&M Contractor for the power plants of GIL and GPL. GVKPIL was originally promoted by our Promoters and CMS Energy USA. CMS Energy USAcontributed 60% of the equity capital through JOMC Mauritius and the balance was contributed by the Promoters through Triumph International.. In February 2005 GVK Reddy and his family bought the entire stake of Triumph International and JOMC Mauritius.GIL was originally promoted in 1992 by the GVK and CMS (USA). The Asian Infrastructure Fund (through Golden Palm Limited and Vintage Investments Limited) subscribed to 29.75% of the equity share capital of GIL in 1993. In September 1995 pursuant to an equity investment of 10% as well as a loan to GIL by IFC the then shareholders of GIL executed a shareholders agreement to set out their inter-se rights and duties as regards GIL. See "History and Certain Corporate Matters- GVK Industries Limited-Agreement among the shareholders of the GIL" on page [*] of this Draft Red Herring Prospectus for further details. For further details see "Capital Structure- Notes to Capital Structure" on page [*] of this Draft Red Herring Prospectus.GPL was originally incorporated by Satyam Constructions Private Limited (name subsequently changed to Maytas Infra Private Limited) in 1996. Subsequently IJM Corporation Berhard (Malayasia) joined as strategic equity partner. In 2000 NCC Power Corporation Limited another IPP based in Andhra Pradesh merged with Gautami Power Private Limited through a Scheme of Amalgamation. As a result of the merger the shareholders of GPL were Maytas Infra Private Limited along with their affiliates IJM Corporation Berhard (Malayasia) through its subsidiary and NCC Power Corporation Limited. In July 2003 the Promoters through GVK Energy Holdings Private Limited (originally GVK Power Private Limited) took over the Company as a strategic equity partner and assumed the responsibility of implementing the power project and also contributed to the equity of the project and executed an agreement in July 2003. Currentlyequity contribution to the extent of 38.38% to the paid up equity of GPL has been made by GVKPIL which is proposed to be increased to 51% through the infusion of part of the IPO proceeds. The other equity share holdings of Maytas IJM and NCC are 17.71% 25.09% and 18.82% respectively. See "History and Certain Corporate Matters- Gautami Power Limited- Agreement among the shareholders of the GPL" on page [*] of this Draft Red Herring Prospectus for further details.The Company has tied up the entire financial assistance of Rs.10150 million (constituting 70% of the project cost of Rs 14500 million) from various lenders lead by Power Finance Corporation Limited (PFC). As a part of the security mechanism Maytas IJM NCC and GVKPPL and their respective affiliates were required to pledge 51% of their respective shareholding on the current paid up capital of the GPL with PFC. Accordingly GVK Energy Holdings Private Limited and Transoceanic Projects Limited Mauritius (affiliates of GVKPPL) have pledged 51% of their holding in GPL with PFC. In October 2005 GVKPIL acquired GVKPPL and Transoceanic Projects Limited?s equity stake in GPL. Accordingly 51% of theequity shares in GPL now held by GVKPIL continue to remain pledged with PFC.