Monnet Power IPO : Plans IPO by mid of 2012

by khalid on 08/07/2010 · 0 comments

Monnet Power Company Limited (MPCL) is a subsidiary of steel-maker Monnet Ispat & Energy Ltd. The company plans to make an initial public offer (IPO) to sell its 20 per cent equity by 2012. The actual amount that will be raised through the offer is yet not disclosed. The funds will be utilized towards Brownfield expansion. The company is planning to set up 2,000 Mw power generation project within next three years. Company Chairman, Sandeep Jajodia said, We want to list Monnet Power in two years from now… between January, 2012, to June, 2012, we will sell 20 per cent stake.

Disclosing company’s expansion plans, Jagjodia said, We are planning to set up 2,000-Mw worth of projects, for which the work is underway.The new project is expected to absorb funds worth Rs 9,000 crore and the rest will be funded through debt and internal accruals, said Mr Jagjodia. He said the company will require additional funds that will be met from the proceeds of the issue.

Monnet power is currently involved in its 1,050 Mw (2×525 Mw) thermal power project at Angul, in Orissa. It will be implemented in phases with a capacity of 525 MW likely to be commissioned by June 2012 and the second phase is scheduled to be commissioned by September, 2012.

The company also plans to set up three more power projects in the country with 1,320 Mw coastal projects in Gujarat, a 250-Mw plant in Raigarh and another 525-Mw unit at its Orissa plant. Monnet eyes coal properties abroad as a part of its diversification strategy. Jagjota said, We are looking for coal mines in Indonesia and South Africa.

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