• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Mumbai, Oct. 4 Reliance Power has mandated banks and financial institutions to raise up to $6 billion (Rs 24,000 crore) in syndicated loans on a secured basis, said the company’s prospectus filed with SEBI for its initial public offering.

The company is offering 10.1 per cent of its post-issue paid up capital through the proposed IPO.

Reliance Power is the subsidiary of Reliance Energy that has bid for and won the 4,000-MW ultra mega power project at Sasan.

The net proceeds from the public issue will cover only part of the estimated cost of the several projects in the pipeline. Debt funding of approximately Rs 25,431.1 crore will be required, said the prospectus.

Brokers estimate that the public issue could raise around Rs 10,000 crore.

The 12 projects under development by the Anil Dhirubhai Ambani group will require Rs 76,472.8 crore in debts, it said.

The prospectus says that the Anil Dhirubhai Ambani Group intends Reliance Power to be the main vehicle for the group’s generation projects.

Approximately 20 per cent of the projects cost would be in contributions from Reliance Power, and nearly 80 per cent with third-party debt. The company believes this division reflects the current market for financing power projects in India, said the prospectus.

More Stories on : Power | New Projects | IPOs

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
IMD hoists ‘low’ watch over Bay

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line