Adani chalks out Rs 5,000 cr power IPO

Adani group has begun the spadework to come up with a mega initial public offering (IPO) aiming to raise about Rs 5,000 crore (Rs 50 billion) for setting up a power generation capacity of close to 10,000 megawatt in next five years.

The company is chalking out investments plans for generating 1,320 mw power in Rajasthan and 2,000 mw at Dahej in Gujarat by 2012.

While Gujarat State Petroleum Corporation (GSPC) is also planning to enter the capital markets in September, Adani Power is likely to hit the markets ahead of the state-run PSU.

A senior official, while confirming the issue, said that Adani will file the IPO papers with the market regulator Securities and Exchange Board of India (SEBI) in a week or two's time. SBI Capital has been roped in as one of the merchant bankers.

Adani's 4,620 mw power project at Mundra is being set up in the vicinity of Tata  Power's ultra mega power project (UMPP) of 4000 mw.

The company is already implementing the project through internal fund generation, debt and private placement of equity with London-based 3i Group Plc.

Adani also owns and operates country's one of the largest and highly mechanised state-of-art-ports at Mundra in Gujarat, which is likely to handle close to 30 mmt of cargo during 2007-08.

The power plants of Adani and Tata at Mundra will be based on imported coal. The coal requirements for these plants will be near 26 mmt. This coupled with other commercial coal imports will make Mundra the world's largest coal receiving terminal with capability to handle over 30 mmt of coal.