The Hindu Business Line : GIPCL appoints merchant bankers for public issue

STATE-OWNED Gujarat Industrial Power Company Ltd (GIPCL), which recently announced that it would raise Rs 225 crore through a public issue to part finance the proposed Rs 1,150-crore expansion of its Surat power plant, has appointed four merchant bankers for the issue.

The merchant bankers — HSBC Securities Ltd, Enam Securities Ltd, Alliance Securities Ltd and Gujarat State Financial Services Ltd — would help GIPCL with the public issue as also to raise Rs 800 crore as debt for the project. The company would pitch in with Rs 125 crore as equity for the project, GIPCL General Manager (Finance), Mr D.N. Bhatia told Business Line from Baroda.

The debt-equity ratio of the expansion would be 70:30, he said. The funds would be used for the doubling of the company's lignite-based 250 MW power plant at Surat to 500 MW, Mr Bhatia said.

Out of Rs 1,150 crore, nearly Rs 1,000 crore would go towards the power plant and Rs 150 crore to develop lignite mines acquired by the company at Valia and Mangrol.

GIPCL, which is already listed, had reported a net profit of Rs 34.43 crore in the first quarter of the current financial year. It expects to raise the additional equity at a premium due to its positive performance in the recent past.