India GMR in Temasek talks to raise $150 mln-sources

MUMBAI Dec 14 (Reuters) - Indian conglomerate GMR Infrastructure (GMRI.BO) is in advanced talks with Singapore investment firm Temasek [TEM.UL] to raise $150 million by selling shares in its power unit, two sources with direct knowledge of the development said.

One banking source who is involved in the talks said the equity sale in GMR Energy, a fully owned subsidiary, would be through a private placement.

The group is also holding talks with U.S. fund Carlyle and IDFC Private Equity, a unit of India's Infrastructure Development Finance Co (IDFC.BO), but Temasek is the frontrunner, a senior GMR source said.

A spokeswoman for GMR Infrastructure said the company was looking for a private equity placement, but declined to comment on details.

Temasek did not respond to an e-mail seeking comment.

The proceeds from the sale will be used to partly fund the expansion plan of GMR Energy, which aims to add 6,700 megawatt of capacity over the next five years to its existing 800 megawatts, the sources said.

Last month, GMR Infrastructure's chief executive, Raaj Kumar, had told Reuters the group would need about 300 billion rupees ($6.4 billion) for its power projects over five years. [ID:nBOM436437]

A Subbarao, the group's chief financial officer, told the Reuters India Investment Summit on Nov. 24 the group was in discussion with private equity firms and financial investors to sell shares. [ID:nBOM491918]

In June, the GMR Infrastructure had cancelled institutional placement of shares due to inadequate response.

Bangalore-based GMR, which builds and manages airports, roads and power plants in India, has benefited from a government focus on infrastructure. Its operations outside India include power plants in Europe, Mexico and Australia, and Istanbul airport. (Editing by Ranjit Gangadharan)