The Hindu Business Line : Suryachakra Power to enter capital market

Mumbai June 18 Suryachakra Power Corporation Ltd proposes to enter the capital market with an initial public offering of 3.4 crore equity shares of Rs 10 each. The issue is being made through a 100 per cent book building process and the price band has been fixed at Rs 17-Rs 20 per equity share.

The issue opens on June 25 and closes on June 29.

Out of the 3.4 lakh equity shares on offer, up to four lakh shares have been reserved for employees of the company. Post issue, the promoters' stake will come down to 50.49 per cent.

The proceeds of the issue will be utilised to invest in the equity of MSM Energy Ltd, a wholly owned subsidiary of the company, for setting up of two 10-MW bio-mass based power plants in Maharashtra and to meet the company's working capital needs for power trading and other fund requirements.

In addition, the company's other two subsidiaries, Lahari Power and South Asian Agro, are to set up two bio-mass based power plants of 9.8-MW each in Chhattisgarh.

Suryachakra already has a 20-MW power plant in the Andaman & Nicobar, set up in 2003, by Reliance Energy, which also has a 4.82 per cent stake in the company.

The IPO has been given a grading of 2/5 by Crisil.

The book running lead manager to the issue is SREI Capital Markets Ltd and the registrar to the issue is Karvy Computershare Pvt Ltd.