AIM-listed OPG Power Ventures has raised $97 million or £60 million by issuing around 64.5 million shares, which accounts for dilution of a 18.3% stake. The current round of funding will help the Chennai-based firm, which builds and operates power generation assets, to expand its capacity.
OPG said in a statement that this equity funding will help it expand from the current 107 MW to a further 555 MW of capacity. The placement of shares was done at 98.5 pence per unit. The firm did not disclose further details on the investors.
OPG Power aims to expand its operational capacity to 1,250 MW by 2015. The current fundraising is subject to be passed at the Extraordinary General Meeting on February 28, 2011.
This development comes after OPG acquired a small plant and land in Karnataka, where it plans to build a 250-300 MW power plant. OPG paid Rs 64.90 crore (approximately £9.6 Million) for a 120 acre property at Bellary, Karnataka. The property includes a 12 MW partially constructed thermal power plant, which is expected to be commissioned by Q3, 2012.
OPG is also increasing production at its 19.4MW gas plant in Tamil Nadu by a further 6MW, which is expected to be commissioned by June 2011. OPG entered into a Memorandum of Understanding with the Government of Gujarat for the development of 5,400 MW of generation capacity, of which 1,400 MW is to be gas based.
Other projects under work include a second 77 MW module in Chennai and the 300 MW (2 x 150MW) plant in Kutch.
"We are delighted with the support for the Placing shown by new as well as existing investors. The funds raised will allow us to execute our planned strategy to substantially increase the number of our projects and our generating capacity at a time when India faces a significant shortfall of supply versus demand," said Arvind Gupta, Chief Executive of OPG.