The beleaguered Dabhol power plant is likely to go public with an initial public offering of about 25 per cent equity shares by the end of the year.
Ratnagiri Gas and Power Pvt Ltd, the joint venture of state-run GAIL India and National Thermal Power Corporation Ltd which owns the 2,150-MW power plant and the adjoining LNG import terminal, plans an IPO to raise Rs 1,000 crore (Rs 10 billion), company Chairman R K Goel told reporters in New Delhi.
"In the first instance, the board of RGPPL will this month consider changing its character from a private company to a public limited one," he said. After that, it will apply to the Registrar of Companies for a certificate for commencement of business as public limited firm and IPO will follow that.
Out of the total share capital of Rs 4,000 crore (Rs 40 billion), promoters GAIL, NTPC, Maharashtra State Electricity Board and financial institutions have so far contributed Rs 2,985 crore (Rs 29.85 billion) and the balance is to be raised through the IPO, he said.
RGPPL plans to use the IPO proceeds to pre-pay the debt it has taken from Power Finance Corporation and NTPC. The firm has taken Rs 350 crore (Rs 3.5 billion) loan from PFC for completion of the power plant and LNG import terminal. NTPC had also sanctioned Rs 500 crore (Rs 5 billion) loan, of which Rs 150 crore (Rs 1.5 billion) has been drawn.
Goel said the IPO will be followed by a Rs 500-crore (Rs 5 billion) private placement of equity shares which was likely to be subscribed by the lenders -- IDBI, ICICI Bank, SBI, Canara Bank and IFCI, which who have wished to convert part of their Rs 7,011-crore (Rs 70.11 billion) term loan into equity.
The Dabhol plant will be fully operational by next month when the third generating unit is commissioned, he said adding that currently, two units were generating about 1,100
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