Ratnagiri power plant plans IPO, to raise Rs1,000 crore
11 March 2008
New Delhi: Ratnagiri Gas and Power Pvt Ltd (RGPPL), which owns the 2,150-MW Dhabol power plant is planning to go public with an initial public offering (IPO) of about 25 per cent equity shares by the end of the year.
RGPPL, which is a joint venture of state-run GAIL India and NTPC Ltd, is planning an IPO of about Rs1,000 crore by end of 2008, RGPPL chairman R K Goel said today.
Goel noted that the RGPPL board would consider converting the Private Limited Company into a Public Limited firm and apply to the Registrar of Companies for a certificate for commencement of business as a public limited firm and subsequently consider an IPO.
The total share capital of the company is Rs4,000 crore, out of which promoters GAIL, NTPC, Maharashtra State Electricity Board and financial institutions have so far contributed Rs2,985 crore and the balance is likely to be raised through the IPO, Goel said.
RGPPL plans to use the IPO proceeds to pre-pay the debt of Rs350 crore it has taken from Power Finance Corp (PFC) and NTPC for completion of the power plant and LNG import terminal. NTPC had also sanctioned a Rs500-crore loan, of which Rs150 crore has been drawn.
Goel said post the IPO a private placement of equity shares worth Rs500 crore would follow, to lenders such as IDBI, ICICI Bank, SBI, Canara Bank and IFCI, who may convert part of their loan into equity.
The Dabhol plant will be fully operational by next month when the third generating unit is commissioned, he said adding that currently, two units were generating about 1,100 MW of electricity.