Indiabulls Power Ltd, the subsidiary of company’s real estate arm Indiabulls Real Estate, will go to the market with an initial public offering to raise Rs 2,000 crore. The IPO opens on October 12 and closes on October 15.
Indiabulls Power plans to utilise the proceeds to part-finance the construction and development of its 1,320-MW Amravati Power Project Phase I, 1,335-MW Nashik Power Project and for funding equity contribution in the company’s wholly owned subsidiary, Indiabulls Realtech Ltd (IRL), reports CNBC TV18. IRL is a special purpose vehicle (SPV) of Indiabulls Power Ltd.
The company plans to invest around Rs 775 crore and Rs 660 crore in Amravati and Nashik power projects respectively.
According to the draft prospectus released early in July, the company will issue 39.07 crore equity shares including a greenshoe option, which constitutes 19% of its post-issue equity.
Indiabulls Real Estate currently holds 71.4% stake in the company. Other stake holders include UK-based billionaire LN Mittal's LNM India Internet Ventures (10.7%) and private equity firm FIM Ltd (17.9%).
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