ACB India set to raise Rs 1,100 cr through IPO, OFS this month
Mar 03 2013 , Mumbai
"The company has received all the necessary permissions and is set to hit the capital market in the third week of March with IPO aggregating Rs 575 crore and remaining offer for sale," ACBIL Chairman and Managing Director Rudra Sen Sindhu told PTI here.
Global private equity major Warburg Pincus is expected to sell 8.8 per cent stake in ACB India through an offer for sale out of its total 22 per cent stake.
The company proposes to use IPO proceeds of around Rs 1,100 crore from the offering to develop pit-head power plants close to its beneficiation facilities. ACB India plans to commission two power projects of total 900 MW power generation capacity in Chhattisgarh by 2014, entailing total investment of about Rs 4,000 crore, Sindhu said.
The company, with an installed capacity of 500 MW, has another 3,000 MW of power projects in various stages of construction, implementation and development. The company also plans to bid for coal blocks as and when the government decides to auction them.
The company has already pumped about Rs 1,100 crore in both the plants. The coal linkages to these power plants would be supplied by Coal India.
The company had forayed into power sector in 2007 with the commissioning of its first 30 MW power project in Chhattisgarh.
ACBIL coal beneficiation operations also offers logistics services to its customers to manage their supply chain and delivery of raw coal from the mines to company's beneficiation plants and washed coal from company's plants to their sites.
The company sources majority of the coal rejects it needs for its operational power plant in Chhattisgarh from their coal beneficiation business.
ACBIL also sell coal rejects, reprocessed coal rejects, coal rejects blended with imported coal or with coal (both processed and unprocessed) purchased through the e-auction process conducted by Coal India Ltd subsidiaries.
The company considers its coal beneficiation operations, power generation operations and sale of coal to be an integrated business.
ACBIL plans to expand the aggregate design beneficiation capacity, on proportional basis, to 93.61 million tonnes per annum by the end of fiscal 2017.
The company's plants are located at Chhattisgarh, Orissa, Maharashtra and Andhra Pradesh.