Adani Power IPO to hit markets on 20th July

SEBI has given green signal to Adani Power Limited’s initial public offer (IPO). The company is expected to hit the capital market on 20th July. APL, which had postponed its IPO due to bad market condition in September 2008, is now planning to raise over Rs 3,000 crore for financing its 6600 MW power plants at Mundra and Tiroda in Gujarat and Maharashtra respectively.

As per the plan, Adani Power Limited is offering 33.77 crore equity shares through the IPO. The company is expected to charge a premium of around Rs 120 per share of Rs 10, sources familiar with the situation said.

At present, the promoters hold 87 per cent equity in the company. Post IPO, the promoters will have around 73.5 per cent holding as it is raising an additional 15 per cent equity through IPO. It may be pointed out that a UK based private equity fund has already picked up 8 per cent equity in the company.

Source: greymarket.in

Adani Power IPO Likely to Open in July 2009

Adani Power's initial public offer (IPO) is likely to open in July, 2009, said the Group Executive. "The IPO is likely at about Rs 120 per share," reports CNBC-TV18.

Adani Power, a part of the the Adani Group, filed draft red herring prospectus (DRHP) with market regulator SEBI for IPO of 33.7 crore equity shares. The issue includes a reservation of up to 8,000,000 shares. Equity shares outstanding post issue would be 2,18,00,35,200.

It is a power project development company, which is developing, and will operate and maintain, power projects in India. It has four thermal power projects under various stages of development, with a combined installed capacity of 6,600 MW. In addition, it is also planning to develop two power projects with a combined installed capacity of 3,300 MW.

The company is going to utilize the issue proceeds - to part finance the construction and development of Mundra Phase IV Power Project, for 1,980 MW; funding equity contribution in subsidiary Adani Power Maharashtra Limited and to part finance the construction and development cost of power project for 1,980 MW at Tiroda, Maharashtra; and General corporate purposes.

The company has made preferential allotment to Ventura Power at Rs 70 a share. This placement price values the company at Rs 15,260 crore post IPO.

Adani Enterprise, promoter will hold 70.25% stake in the company post IPO.

Global coordinator and book running lead manager to the issue is DSP Merrill Lynch Limited and Registrar to the issue is Karvy Computershare Private Limited.

Source: Moneycontrol.com

Adani Group begins groundwork for Adani Power's IPO

Adani Group is believed to have started the groundwork for the initial public offering (IPO) of Adani Power (APL). The company is in talks with merchant bankers.

The weak market condition has come in the way of the company in taking a final call on the IPO. Industry sources said that the company has already initiated discussion with a number of merchant bankers, including SBI Caps, for issue advisory.

Sources said that the company is currently waiting for the market conditions to improve before taking a final view on the issue size and timing. “We are not expecting the issue to hit the capital markets before September-October,” a merchant banking source said.

Sources in APL though admitted that there are some early considerations about the IPO, stressed that the group was yet to take a call on the issue.

It may be mentioned that 3i India Infrastructure Ltd, London-based private equity firm 3i Group’s investment vehicle, has already invested Rs 900 crore (USD 227 million) to acquire a minority stake in Adani Power Ltd.

According to sources, Adani Power Maharashtra Pvt Ltd – a wholly owned subsidiary of Adani Power Ltd – may announce the financial closure of the proposed 1,320 MW (2X 660 MW) coal-based thermal power plant at Tirora by May-June. Tirora is in Gondia district of Maharashtra.

According to sources, Adanis are in an advanced stage of tying up the loan finances of the project. “The lenders to the Tirora project are already identified. We are expecting Adani Power to announce the financial closure of the project latest by June,” a banking industry source said.

Meanwhile, Adani Power is making steady progress in implementing the 4X 330 MW (1,320 MW) thermal power project at Mundra. The project will be expanded by another 1,320 MW in the second phase.

“Implementing of the phase-I is on schedule. The first 330 MW unit is expected to be commissioned in the second quarter of 2008-09. The rest three units are expected to be commissioned in a phase-wise manner in a gap of every three to four months from the commissioning of the first unit,” a source said, reports The Hindu Business Line.

Source: Moneycontrol.com