The Hindu Business Line : Adani Enterprises in limelight

Adani Enterprises has been one of the star performers on the bourses. The stock gained 70 per cent in a month’s time and 31.51 per cent in a week’s time. According to market sources, the stock has been gaining on the back of market talks that Adani Power, a wholly owned subsidiary of Adani Enterprises, may issue less than 10 per cent preferential equity to an international private equity. Sources say that the group has been in discussion with a few such international PE firms in this regard for some time now. The quantum of funds to be raised through the proposed fresh issue, however, is not known. According to marketmen, some investors also expect that the unlisted entity will tap the market eventually.

When contacted, Adani group official sources declined to comment on the issue.

Power projects

Adani Power is at present implementing a 1,320-MW (4X330 MW) coal-based power plant at Mundra. The project is slated to be commissioned in a phased manner beginning 2008. In the second phase, Adani Power will set up a 2X660 MW (1,320 MW) coal-based power plant at the same location. The company has recently awarded the turnkey contract for setting up the second phase of the power plant to Shandong Electric Power Corporation (SEPCO III) of China. The project is expected to be completed in 2011. The total cost of the 2,640-MW (combining both phases) project is estimated to be over Rs 10,000 crore. The group has already secured open cast coal mining right in a block in Indonesia. The mining activity will be synchronised with the commissioning of phase-I of the power project.

Pratim Ranjan Bose
K.S. Badri Narayanan

More Stories on : Stocks | Stock Markets | Ear to the ground

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