Rs 2,200-cr Adani Power IPO gets nod

Last Updated: Wed, Jul 15, 2009 04:45 hrs

Ahmedabad: With the Securities and Exchange Board of India (SEBI) today giving a go-ahead to Adani Power Ltd (APL) for its proposed initial public offer (IPO), the company is now bracing to hit the capital market in the last week of July to collect around Rs 2,200 crore, to part-fund its upcoming power projects.

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APL will finalise the exact dates and price-band of the public issue in the next few days, a company spokesman told Business Line here. However, its road-shows would commence next week.

The company has synchronised the first unit of 330 MW at the imported coal-fired thermal power plant at Mundra in Kutch district of Gujarat. It had approached SEBI with its Draft Red-Herring Prospectus, reviving its last year's IPO proposal. SEBI had, pending final approval, sent its observations to the company on June 19, which have been incorporated in the offer proposal.

APL proposes to offer nearly 30-crore shares, out of a total of 228 crore, with a face value of Rs 10 a share, with a premium yet to be decided. DSP Merrill Lynch Ltd is the global coordinator and book running lead manager for the public offer.

A UK-based private equity fund had bought 8% equity in APL whose promoters have so far invested around Rs 3,500 crore in the project and tied up debt of nearly Rs 22,670 crore.

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