KSK Power Plans $500-M Dual Listing In AIM And Channel Islands
Even as the domestic primary market is struggling to get back on track, an India-focused firm is raising this year’s biggest IPO at London’s AIM market. KSK Emerging India Energy Fund has announced that it plans to raise up to $500 million through a dual listing at AIM and the Channel Islands Stock Exchange, Financial Times reported.
The fund would get listed by June at AIM and would be the largest IPO at AIM till date this year. It is an investment company centred on the Indian energy sector to be managed and advised by subsidiaries of, KSK Power Ventur Plc, which is a AIM listed firm specialising in building power plants in India. KSK Power Ventur, floated in 2006, is one of the larger companies listed on AIM, with a market cap of £766 million.
The new fund will invest mainly in companies with assets in India. It has shortlisted a pipeline of 14 investments, including turbine and boiler-makers, as well as hydro-electric, gas-fired and biomass specialists to invest between $5-75 million over 2-8 years, and aims to generate returns of at least 20 per cent at the time it exits.
Not more than 20 per cent of its net asset value will be invested in any single company, and at least 80 per cent of the placing proceeds are expected to be invested within 12 months of admission to AIM.
The board of the fund includes names like that of Scott Bayman, the former CEO of GE India. The nominated adviser is Grant Thornton, and broker is Liberum Capital.
Interestingly, Hyderabad-based KSK Energy Ventures, the Lehman Brothers-backed company had plans to come out with a domestic IPO. In February, the captive power plant developer filed its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for a listing in BSE and NSE. It’s not clear if KSK would go ahead with its domestic IPO now.
KSK is a leading captive power plant developer, and has been in operations for the last eight years. The company offers electrical power to major international and domestic businesses. KSK is also developing coal and lignite mines to supply fuel for its own projects.
