The Hindu Business Line : Adani Group begins groundwork for Adani Power’s public issue

The weak market condition has come in the way of the company in taking a final call on the IPO. Industry sources told Business Line that the company has already initiated discussion with a number of merchant bankers, including SBI Caps, for issue advisory.

Sources said that the company is currently waiting for the market conditions to improve before taking a final view on the issue size and timing. “We are not expecting the issue to hit the capital markets before September-October,” a merchant banking source told Business Line.

Sources in APL though admitted that there are some early considerations about the IPO, stressed that the group was yet to take a call on the issue.

It may be mentioned that 3i India Infrastructure Ltd, London-based private equity firm 3i Group’s investment vehicle, has already invested Rs 900 crore ($227 million) to acquire a minority stake in Adani Power Ltd.

According to sources, Adani Power Maharashtra Pvt Ltd – a wholly owned subsidiary of Adani Power Ltd – may announce the financial closure of the proposed 1,320 MW (2X 660 MW) coal-based thermal power plant at Tirora by May-June. Tirora is in Gondia district of Maharashtra.

According to sources, Adanis are in an advanced stage of tying up the loan finances of the project. “The lenders to the Tirora project are already identified. We are expecting Adani Power to announce the financial closure of the project latest by June,” a banking industry source told Business Line.

Meanwhile, Adani Power is making steady progress in implementing the 4X 330 MW (1,320 MW) thermal power project at Mundra. The project will be expanded by another 1,320 MW in the second phase.

“Implementing of the phase-I is on schedule. The first 330 MW unit is expected to be commissioned in the second quarter of 2008-09. The rest three units are expected to be commissioned in a phase-wise manner in a gap of every three to four months from the commissioning of the first unit,” a source said.

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