Sterlite Energy IPO : CRISIL gives 4 out of 5

by khalid on 12/12/2010 · 0 comments

Vedanta Group company Sterlite Energy IPO has got 4 out of 5 by CRISIL (rating agency) and this rating/grading is Above Average for a power generation comapny. The grade 4 indicates that the fundamentals of the IPO are Above Average compared to the other listed securities in India. The grade assigned to Sterlite Energy reflects CRISIL’s view that the current power deficit in India coupled with sustained economic growth will fuel power demand, creating ample opportunities for companies in power generation.

The company has recently commissioned the first unit (of the four units) of 600 MW of the Jharsuguda project; the full project is expected to be operational by August 2011. The grade factors in the cost competitive advantage of the Jharsuguda project due to its low-capital cost and proximity to fuel source. Further, the Jharsuguda project is expected to benefit from the high merchant tariffs as around 70% of the capacity is expected to be sold through the merchant route.

The consolidated net worth of the company as of September 2009 was Rs 13.5 billion and debt was Rs 24.5 billion.

Stay tuned to BelltheBull Blog for more on Sterlite Energy IPO !

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