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Private sector power producer, Hindustan Power Projects Pvt Ltd (HPPPL) will raise funds for its renewable energy projects by selling shares of its subsidiary, Hindustan Clean Energy through an initial public offer (IPO) by the end of 2014-15.
Sources informed that the wholly-owned subsidiary of HPPPL is likely to raise around $ 1 billion (Rs 5,900 crore at current exchange rate) through the IPO. The proceeds from the IPO will be utilised for company’s plans to achieve combined 1,000 MW of solar photovoltaic (PV) power generation capacities in India and abroad.
“We will raise incremental equity to fund our solar projects. We will come up with the IPO for Hindustan Clean Energy by the end of this year or the second month of next year,” Ratul Puri, Chairman, HPPPL told BusinessLine.
Currently, Hindustan Power has around 320 MW of operational solar capacities in Gujarat, Punjab, Uttar Pradesh, Tamil Nadu among others. Additionally, it has 120 MW of solar capacities located in Europe. The company plans further expansions in India and Japan.
“In size and scale, we have the largest solar capacity under generation or in the pipeline,” said Puri. According to Puri, the company will invest around Rs 4,500 crore during current fiscal for 200 MW of solar and 1200 MW of thermal capacities. “The investments during this fiscal will be funded through bank finance and equity investment with a debt to equity ratio of 75:25,” he said.
The company has chalked out an ambitious overall investment plan of Rs 32,000 crore for the power generation to the tune of 5,300 MW through a mix of thermal, hydro and solar in different parts of the country and abroad by 2016-17.
Puri expressed confidence of revival in the power sector with new government at the Centre. “It has given positive indications to the India’s power sector by unification of the three ministries related to power sector and putting a right leader with commercial background to head it,” he said.
In 2010, New York-based Blackstone had invested $ 300 million in the company and currently holds about 30-35 per cent in the parent, HPPPL.
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