SEBI clears Indiabulls Power IPO
The market regulator, SEBI (Securities & Exchange Board of India) has okayed Indiabulls Power’s IPO (initial public offering). This subsidiary of Indiabulls Realty is expected to raise around Rs 2,000 crore.
The proceeds of the issue will be used to part finance the construction and development of the 1,320 MW Amravati Power Project Phase – I (Rs 775 crore from the issue) and for funding equity contribution in the company’s wholly owned subsidiary, IRL, to part finance the construction and development of the 1,335 MW Nashik Power Project (Rs 660 crore from the issue).
The company has filed its DRHP (draft red herring prospectus) with the SEBI on July 15, 2009. It is coming out with an IPO of 33.98 crore equity shares of Rs 10 each. There will also be a green shoe option of up to 50,900,000 equity shares, which will take the issue size to 39.07 crore shares. Before the green shoe option, the issue will constitute 16.98% of the fully diluted post issue paid-up capital of the company and post the green shoe option – 19.06%.The Company has five thermal power projects under development, which will have a combined installed capacity of 6,615 MW. Projects include -:
1 – Amravati Phase I Power Project will have two super-critical units of 660 MW each, with combined capacity of 1,320 MW.
2 – Nashik Power Project will consist of five units of 135 MW each and two units of 330 MW each, with a combined capacity of 1,335 MW.
3 – Bhaiyathan Power Project will have two super-critical units of 660 MW each, with combined capacity of 1,320 MW.
4 – Amravati Phase II Power Project will have two super-critical units of 660 MW each, with combined capacity of 1,320 MW.
5 – Chhattisgarh Power Project is expected to have two super-critical units of 660 MW each, with combined capacity of 1,320 MW.
Apart from these projects, the Company is developing four medium sized hydro-power projects of 60 MW, 30 MW, 46 MW and 31
MW in Arunachal Pradesh.
For the year ended March 31, 2009, it has reported profit of Rs 82.96 crore on total income of Rs 141.34 crore on the consolidated basis.
Morgan Stanley India Company Pvt Ltd is the book running lead manager and Karvy Computershare Pvt Ltd is the registrar to the issue.
Source: Money Control
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Category: IPO
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