Sterlite Energy, a wholly-owned subsidiary of Vedanta Group firm Sterlite Industries, has filed its draft red herring prospectus (DRHP) to raise Rs 5,100 crore or $1.1 billion through a public issue.
The utility firm will use the proceeds to part fund two thermal power plants. Sterlite Energy also plans a pre-IPO placement of Rs 200 crore with investors.
Sterlite Energy is developing its two plants in Punjab and Orissa with a combined capacity of 4,340 MW. These are being built at an expected investment of about Rs 15,000 crore.
It remains to be seen how the markets will respond to this issue. Issues of Indiabulls Power and Adani Power, two other private power companies which went pubic recently, have made lacklustre debuts in the market. Indiabulls Power, which raised about $380 million through its IPO, slumped as much as 22% on debut today.