Adani Power, part of the Adani enterprises, will hit the market with its initial public offer on July28 to raise Rs 2,200 crore for funding expansion plans.
Market regulator SEBI has approved the company’s initial public offer, a company official said, adding the issue is likely to hit on July 28.
The company will offload 33.7 crore equity shares through the IPO after which the promoter holding in the power firm will come down to about 73.5 per cent.
It intends to utilize the issue proceeds for partly financing the construction and development of Mundra Phase IV Power Project, for 1,980 MW and funding equity contribution in the subsidiary Adani Power Maharashtra Limited to part finance the construction and development cost of power project for 1,980 MW at Tiroda, Maharashtra.
Besides, the overall debt requirement for the two projects is Rs 22,000 crore, which has been arranged from the State Bank of India, ICICI Bank, Power Finance Corporation (PFC) and Rural Electrification Corporation (REC).
While SBI is lending Rs 16,000 crore, ICICI Bank would provide Rs 1,200 crore. PFC and REC are lending Rs 2,600 crore and Rs 1,500 crore, respectively.
Meanwhile shares of Adani Ent. Locked in the 10% upper circuit closed at 742rs
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