Adani Power announces Rs2,200 crore IPO
21 July 2009
Adani Power, a part of the $4.6-billion Adani Group, plans to raise Rs2,200 crore through an initial public offering (IPO). The proceeds from the IPO will go towards part financing of its 2,640 MW coal-fired power plant at Mundra, Gujarat, and the 1,320 MW plant at Tiroda in Maharashtra.
The IPO comprises 301.65 million equity shares at Rs10 each for cash at a price to be decided through a 100-per cent book-building process. The issue opens on July 28.
Post-listing, the promoter Adani Enterprises will retain about 73.5 per cent in the firm.
Adani Power has entered into agreements with the governments of Haryana, Maharashtra and Gujarat for selling 70 per cent of the power generated from the two power plants. The remaining 30 per cent will be sold as merchant power.
The company is also planning two power projects, a 1,320 MW plant in Rajasthan, and a 1,980 MW project at Dahej in Gujarat.
''The project cost for generating 6,600 MW is estimated at Rs28,369-crore. We have fully tied-up for Rs22,676-crore debt. Out of the balance Rs5,700-crore, Rs2,800-crore worth equity has been placed,'' Adani Power chairman Gautam Adani said.