Nandan Cleantec Plc, backed by investors such as Dubai-based investment firm Istithmar World and ace investor Rakesh Jhunjhunwala, has raised $26 million through its initial public offering on the London Stock Exchange’s AIM Market. Nandan is a vertically integrated biofuel producer.
The company sold 9.6 per cent stake through a fresh issue of shares priced at 60 pence a unit. At 60 pence per ordinary share, the company’s market capitalisation stands at £166.1 million or $266 million.
The current capital infusion will be used to develop a large, sustainable feedstock supply of jatropha for the production of biodiesel.
Xtraa Cleancities Infrastructure, an entity controlled by Nandan’s executive chairman Srinivas Prasad Moturi, holds 44.6 per cent stake in the company. Jhunjhunwala holds 3 per cent stake while Dubai-based investment firm Istithmar World owns 6.9 per cent stake.
Nandan Cleantec’s revenues increased 450 per cent to Rs 441 crore in FY10 from FY09. For the 15-month period ending June 2011, the company had a turnover of Rs 518 crore, with profit after tax amounting to Rs 59.6 crore.
The company is in talks with commercial partners, Indian state governments and other organisations outside India to bring 958,000 hectare to its land bank. It has already signed initial agreements to develop estates of up to 46,000 hectare in Indonesia, 20,000 hectare in Botswana and 8,000 hectare in Rwanda.
Nandan is also looking to invest in additional biofuel production facilities to increase its refining capacity from 275,000 MT per annum to approximately 2,200,000 MT per annum.
“We are delighted with the response we have received from the institutional investors of the UK. Admission to AIM is a logical next step for us in our company’s development and today marks an important milestone that will help us accelerate the delivery of our strategy. We have a strong, profitable and proven business model, and are excited about the opportunities open to us as the world looks to diversify its energy supply,” said Prasad Moturi, executive chairman of Nandan Cleantec.
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