KSK Energy Ventures Limited, the Indian unit of London Stock Exchange-listed power project firm KSK Power Ventur Plc, is looking to raise up to Rs 1,000 crore ($166 million) through an allotment of securities to qualified institutional investors, according to a stock market disclosure.
The company’s board approved the proposed fundraising plan in its meeting on May 1.
Hyderabad-based KSK Energy Ventures has also obtained its board's approval to raise around Rs 15 crore by allotting convertible warrants on a preferential basis to the promoter of the company and its subsidiaries and affiliates.
Founded in 2001, KSK Energy Ventures is engaged in the development, operation and maintenance of power plants in India. The firm operates through two segments—project development and power generation.
In the quarter ended December 31, 2013, KSK Energy Ventures posted a net loss of Rs 6.2 crore compared with a profit of Rs 40.8 crore in the year-ago period. Net sales of the company, however, rose to Rs 572.2 crore in the quarter against Rs 557.5 crore in the same quarter a year ago.
KSK Ventures’ scrip was quoting at Rs 71.25 a share, up around 2.22 per cent on the Bombay Stock Exchange in the mid-day trading on Friday. The company has a market cap of Rs 2,654 crore and if the proposed fundraising is done at the current market price it would lead to significant equity dilution.
KSK as a group had previously got funding from Lehman Brothers. Entities affiliated to the former financial services giant still own around 7 per cent stake in KSK Energy Ventures.
(Edited by Joby Puthuparampil Johnson)