 Mumbai: Adani Power, division of the diversified business group Adani enterprises, is expected to hit the market with its initial public offer on July 28 to raise Rs 2,200 crore for funding expansion plans.
According to a company official, Market regulator SEBI has sanctioned the company’s initial public offer.
The company will divest 33.7 crore equity shares through the IPO after which the promoter holding in the power firm will plunge to about 73.5 per cent. The company is likely to use the proceeds from the IPO to fund its two thermal power plants in Gujarat, one in Mundra and another in Tiroda, totaling 6,600 MW capacity.
Apart from this, the overall debt requirement for the two projects is Rs 22,000 crore, which has been arranged from the State Bank of India, ICICI Bank, Power Finance Corporation (PFC) and Rural Electrification Corporation (REC).
SBI is lending Rs 16,000 crore, ICICI Bank would provide Rs 1,200 crore. PFC and REC are lending Rs 2,600 crore and Rs 1,500 crore, respectively. Adani Power has inked power purchase pacts with Haryana, Maharashtra and Gujarat governments for selling power from the Mundra and Tiroda projects.
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