Adani Power IPO by third week of July,to raise Rs 2,200 cr

Adani Power Ltd,part of the diversified Adani Group,said on Friday that it may tap the capital market for its initial public offering (IPO) in the third week of July.

We have got all the clearances from SEBI…we are waiting for the Budget. We will hit the market after the Budget is presented…may be in the third week of July, Adani Power Ltd Director Ameet H Desai told reporters today. The company proposes to raise Rs 2,200 crore through the IPO by offloading 33.7 crore equity shares. After the IPO,promoter Adani Enterprises will hold about 73.5 per cent in the power firm,Desai said.

The company is currently implementing two thermal power plants in Gujarat,one in Mundra and another in Tiroda,totalling 6,600 MW capacity. 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).

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While SBI is lending Rs 16,000 crore,ICICI Bank is arranging Rs 1,200 crore. PFC and REC are lending Rs 2,600 crore and Rs 1,500 crore,respectively.

Adani Power has signed power purchase agreements with Haryana,Maharashtra and Gujarat governments for selling power from the Mundra and Tiroda projects.

The equipment for the two plants would be sourced from three Chinese companies Shanghai Electric,Dong Fang,and Harbin.

The company also proposes to set up a 1320 MW plant in Rajasthan and another 1980 MW project at Dahej in Gujarat.

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