GMR Energy plans IPO to fund expansion
Mohit Bhalla ET NOW GMR Energy, a part of the GMR Group, is floating an initial public offering (IPO) this year, two persons familiar with the development told ET NOW. The company is planning to file the draft red herring prospectus by last week of November and has appointed Kotak Mahindra Capital and JP Morgan as lead managers to the proposed issue. GMR Energy requires Rs 7,000 crore-Rs 8,000 crore to fund its expansion plans. Part of the fund will be raised through the IPO. When contacted, a GMR spokesperson stated: “We will not be raising money to the extent of Rs 7,500 crore all at once, the fund raising plans are for the next 4-5 years, if and when we come across opportunities depending on the quantum of requirement for the projects.” The company declined to comment on the specific query regarding the IPO plans for GMR Energy. A person close to the company, speaking on condition of anonymity, said the exact amount of money to be raised through the IPO will be decided in the next two weeks. GMR Energy, currently, has three operating power plants in its portfolio. These include a plant in Mangalore with an installed capacity of 235 MW, a plant in Chennai with 200 MW capacity and a plant at Vemagiri in Andhra Pradesh with 387 MW installed capacity. Projects under development include a 1,050 MW capacity power plant at Kamalanga in Orissa, a 1,000 MW power plant at Raikhera-Tilda block in Chhattisgarh and hydro-power projects totalling over 1,200 MW in capacity in Uttarakhand, Himachal Pradesh, Arunachal Pradesh and Nepal. The company intends to add another 700 MW in capacity at the Vemagiri plant and will use the funds for bidding for ultra mega power projects with capacity in excess of 4,000 MW. GMR Energy also has investments in coal assets and owns 94.9% in PT Barasentosa Lestari mines in Indonesia and over 30% stake in Toronto Stock Exchange-listed Homeland Energy Group, which owns coal assets in South Africa. It also owns 10% in Delhi International Airport (DIAL). Adani Power and state-run National Hydroelectric Power Corporation (NHPC) launched IPOs in July and August, respectively, this year. Adani Power’s IPO was subscribed 21.64 times and NHPC’s IPO was subscribed 23 times. Indiabulls Power IPO, to raise over Rs 1,700 crore, is scheduled to open next week. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
