GVK Power & Infrastructure Limited (**GVKPIL**) is an Indian conglomerate historically positioned as a leader in the energy, transportation, and urban infrastructure sectors. Following the strategic divestment of its flagship airport vertical in **July 2021**, the company has entered a period of severe financial distress and structural contraction. As of **July 12, 2024**, GVKPIL is undergoing a **Corporate Insolvency Resolution Process (CIRP)** initiated by the National Board of Company Law Tribunal (NCLT). The company is currently managed by a **Resolution Professional (RP)**, with its Board of Directors suspended. --- ### **Operational Portfolio and Asset Status** The group’s operations are categorized into three primary segments, though the "Others" and "Roads" segments have seen massive deconsolidation due to insolvency and project terminations. | Segment | Primary Activities | Current Operational Status | | :--- | :--- | :--- | | **Power** | Hydro, Gas, and Coal power generation. | **Alaknanda Hydro** is the sole revenue generator. Other units are in liquidation or CIRP. | | **Roads** | BOT/DBFOT highway projects. | Major assets (Jaipur, Deoli-Kota, Bagodara-Vasad) were deconsolidated in **August 2024**. | | **Others** | SEZ, Manpower, and Coal exploration. | Includes **2,600 acres** of land in Perambalur and a **10%** stake in GVK Coal (Singapore). | #### **1. Energy Vertical: The Core Remaining Asset** The **330 MW Shrinagar Hydro Electric Project**, operated by **Alaknanda Hydro Power Company Limited (AHPCL)**, remains the group's primary operational asset. * **Performance (FY 2024-25):** Recorded revenue of **₹869 Crore** (down from **₹1,117 Crore** in FY24) and a profit of **₹81.23 Crore**. * **Efficiency Metrics:** Plant Availability Factor (**PAF**) stood at **56.12%** with a Plant Load Factor (**PLF**) of **49.92%**. * **Debt Refinancing:** In **April 2025**, AHPCL issued **203,137** Senior, Secured NCDs totaling **₹2,031.37 Crore** at a **12% coupon** (maturing 2039) to prepay existing term loans. * **Stranded Assets:** **GVK Industries** is in liquidation; **GVK Gautami Power** was taken over by an RP in **October 2023**; and the **Ratle Hydro Project** was terminated, with the company seeking a **₹290.48 Crore** arbitration award. #### **2. Transportation Vertical: Deconsolidation and Exit** Following the admission of **GVK Transportation Private Limited (GVKTPL)** into CIRP on **August 6, 2024**, GVKPIL lost control of its major road assets. * **Deconsolidated Entities:** GVK Jaipur Expressway, GVK Deoli Kota Expressway, and GVK Bagodara Vasad Expressway. * **Financial Impact:** A gain of **₹599.56 Crore** was recorded on this deconsolidation. * **Project Status:** The **Jaipur Expressway** was handed back to NHAI in **April 2023**; other projects remain in protracted arbitration following concession terminations. #### **3. Land Bank and SEZ** * **GVK Perambalur SEZ:** Holds **₹116.55 Crore** in investment property consisting of **2,600 acres** of vacant land in Tamil Nadu. * **Lien Issues:** Canara Bank has exercised a general lien over this land, refusing to release title deeds despite the original loan being repaid, citing liabilities of an associate company. --- ### **Strategic Divestments and Debt Resolution** The company’s strategy has shifted from growth to survival through asset sales and cooperation with the **Adani Group**. * **The Airport Exit:** In **July 2021**, GVKPIL exited the airport sector via an agreement with **Adani Airport Holdings Limited (AAHL)**. AAHL acquired debt and interest of **GVKADL** (carrying value **₹2,551.07 Crore**) and equity/instruments totaling **₹1,300 Crore**. Divested entities included **MIAL (Mumbai)** and **NMIAL (Navi Mumbai)**. * **Current Investments:** GVKPIL holds **₹1,374.64 Crore** in Optionally Convertible Debentures (OCDs) issued by AAHL, representing its remaining beneficial interest. * **Prospective Resolution Applicants (PRAs):** As of **January 2025**, major players have expressed interest in the CIRP of GVK assets, including **Vedanta Ltd**, **Jindal Power**, **JSW Energy**, and **Shyam Sel & Power**. --- ### **Financial Profile and Solvency Analysis** The company’s financials are heavily impacted by accounting gains from deconsolidation and the erosion of subsidiary net worth. | Metric (INR Crore) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Income** | **802.16** | **1,080.14** | **2,120.26** | | **EBIDTA** | **659.30** | **926.64** | **1,317.92** | | **Profit After Tax (PAT)** | **597.61** | **211.21** | **3,071.08*** | | **Net Worth** | **1,168.10** | **562.77** | **453.01** | | **EPS (Rs.)** | **3.58** | **0.13** | **19.45** | *\*FY23 PAT was inflated by a one-time gain from the deconsolidation of GVK Power (Goindwal Sahib) Limited.* **Debt and Liabilities:** * **Admitted Claims:** The RP has admitted financial creditor claims totaling **₹15,944.89 Crore**. * **GVK Coal (Singapore) Exposure:** GVKPIL has an undertaking to infuse up to **₹4,748.43 Crore** and has provided guarantees totaling **USD 1.13 Billion (approx. ₹9,441.68 Crore)** for this associate. The High Court of England has crystalized a debt of **USD 2.19 Billion** against GVKPIL regarding this project. --- ### **Critical Risk Factors** * **Going Concern Disclaimer:** Auditors have issued a **Disclaimer of Opinion**, citing that liabilities far exceed assets and the company’s future is entirely dependent on the NCLT resolution process. * **Legal and Regulatory Investigations:** The **CBI** and **ED** are investigating alleged fund siphoning from **MIAL**. A charge sheet was filed in **February 2023** against the Chairman and Vice Chairman. The financial implications of these proceedings remain "unascertainable." * **NPA Classification:** Almost all loan accounts are classified as **Non-Performing Assets (NPA)**, leading to loan recalls and legal recovery suits by lenders. * **Water Tax Dispute:** AHPCL is contesting a **₹265.65 Crore** water tax demand from the Uttarakhand government. * **Promoter Pledges:** Substantial portions of promoter equity in subsidiaries are pledged to secure loans for the Singapore coal venture. --- ### **Ownership Structure** As of **March 31, 2025**, the promoter group maintains a majority stake, though control is currently superseded by the CIRP process. * **Total Promoter Holding:** **54.25%** (**856,729,340** shares). * **Vertex Projects LLP:** **46.41%**. * **G V Krishna Reddy (Chairman):** **4.31%**. * **G V Sanjay Reddy (Vice Chairman):** **3.53%**.