Adani Power Ltd, an Adani Enterprises company, has filed draft prospectus with SEBI on Thursday for raising Rs 5,630 crore through IPO to finance its six proposed thermal power projects in Gujarat, Maharashtra, and Rajasthan totalling 9,900 MW at an estimated investment of Rs 43,139 crore.
According to the DRHP, the company proposes to issue a total of 29.69 crore shares of Rs 10 each accounting for 14.35 per cent of the post-issue paid-up capital.
The proposed issue will lead to dilution of the controlling stake of Adani Enterprises in Adani Power from 86.45 per cent to 74.04 per cent. The company had previously allotted approximately 13.55 per cent shares to two PE firms — 3i Power Investment Ltd and Grow Power Trust — at an average price of Rs 144 a share.
While company sources were not available for comment, the industry sources told Business Line that Adanis may time the issue by third-quarter, barely a few months before they were scheduled to start commercial production from 1,320 MW Mundra I and II thermal power projects.
Both the projects are located in Mundra SEZ in Gujarat and are scheduled to commence commercial production in phases beginning January 2009. The projects are reportedly being implemented in a record 30 months.
Overall, the company is implementing 4,620 MW thermal project estimated to cost Rs 19,106 crore at Mundra. While I and II are of sub-critical generation capacity category, Mundra-III (1,320 MW) and Mundra IV (1,980 MW) are of super critical category and will be completed by 2011. APL has already awarded the EPC contracts and firm agreements for coal supplies from Adani group-owned mines in Indonesia. Power purchase agreements are also reached for Mundra-I, II and III.
Mundra apart, sources say that APL proposes to set up 1,980 MW Rs 9,263 crore thermal power plant at Tiroda in Maharashtra. The company is already awarded a coal block by the Union Coal Ministry for the phase-I of the project, which is expected to achieve financial closure shortly.
Adanis have also proposed to set up 1,980 MW (Rs 8,810 crore) generation capacity at Dahej in Gujarat and 1,320 MW (Rs 5,889 crore) at Kawai in Rajasthan by 2011-12.
Generation apart, the company will also create a transmission lines for evacuation of power from all its projects to the national grid. The total investment in transmission project and railway lines for coal supply is projected at Rs 2,393 crore. The cost of development of the mining blocks is estimated at Rs 790 crore, reports The Hindu Business Line.