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Thursday, Mar 25, 2004

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Spectrum shareholder files petition seeking share freeze

Our Bureau

Hyderabad , March 24

A SHAREHOLDER of Spectrum Power Generation Ltd, Mr Laxman Raj Madas, has filed a petition in the Court of Chief Judge, City Civil Courts here, to freeze the shareholding of Mr M. Kishan Rao and R.R. Godavari Power Ltd (RRGPL), a company belonging to Rolls Royce Power Ventures Ltd, in the 208 MW gas-based power plant located near Kakinada in Andhra Pradesh. The petition is posted for hearing on March 28.

Mr Madas said that he had filed the petition on coming to know that Rolls Royce and Mr Kishan Rao, one of the promoter and former Managing Director of SPGL, are negotiating with GVK Power to sell their stake in SPGL. He came to know that Rolls Royce representatives were in the city on Tuesday for this purpose.

The promoters of the company, particularly Mr Kishan Rao, have been accused of committing irregularities, including siphoning of SPGL funds and face various litigations.

While Mr Kishan Rao, his family members and the Bambino group belonging to him has 18.6 per cent stake, RRGPL, with an investment of Rs 56.04 crore, has 32.55 per cent stake in the SPGL, which has an equity base of Rs 172.60 crore. On the other hand, Mr Madas holds 2,700 shares of Rs 10 each in the company.

Apart from GVK Power, Reliance Energy and Tata Power Company Ltd are reportedly showing interest in acquiring a controlling stake in SPGL. The present debt of SPGL, as per its annual report, is stated to be Rs 866 crore. The lenders to the company comprise IDBI, ICICI, IFIC, IIBI, LIC, GIC, NIAC, NIC and OIC. The financial institutions have acquired 35 per cent stake in the company by part of their over due debt into equity.

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