Reliance Power plans to raise $6 bn for new projects
Macquarie Bank, ABN Amro Bank and Deutsche Bank will raise $2 billion each, said Reliance Power in its draft red herring prospectus submitted to SEBI.
By TNN |
MUMBAI: Reliance Power is planning to raise $6 billion in syndicated loans for building power projects. Macquarie Bank, ABN Amro Bank and Deutsche Bank will raise $2 billion each, said Reliance Power in its draft red herring prospectus submitted to SEBI.
On Thursday, the Reliance Energy scrip rose 1.9% to close at Rs 1,477.85 on BSE.
The company, which has won an ultra mega power project in Sasan (MP) and a 1,200 MW coal-fired project in Rosa (UP), is planning to add another 20,000 MW of generation capacity. For Sasan and Rosa projects, the company needs almost Rs 21,000 crore, which covers the cost for engineering, procurement and construction equipment purchase and technology hiring.
Reliance Power plans to sell 130 crore shares, amounting to a 10.1% stake post-issue, to fund various power projects in the country. The company didn’t specify the amount it plans to raise from the issue, but sources said Reliance Power aims to raise around $2-$2.5 billion, making it one of the largest primary issues in India.
At least 60% of the net issue will be reserved for qualified institutional bidders, of which 5% will be for mutual funds.
Kotak Mahindra Capital Company, UBS AG, ABN Amro Rothschild, Deutsche Bank, Enam Securities, ICICI Securities, JM Financial Consultants and JPMorgan Chase & Company are book runners and lead managers for the share sale.
On Thursday, the Reliance Energy scrip rose 1.9% to close at Rs 1,477.85 on BSE.
The company, which has won an ultra mega power project in Sasan (MP) and a 1,200 MW coal-fired project in Rosa (UP), is planning to add another 20,000 MW of generation capacity. For Sasan and Rosa projects, the company needs almost Rs 21,000 crore, which covers the cost for engineering, procurement and construction equipment purchase and technology hiring.
Reliance Power plans to sell 130 crore shares, amounting to a 10.1% stake post-issue, to fund various power projects in the country. The company didn’t specify the amount it plans to raise from the issue, but sources said Reliance Power aims to raise around $2-$2.5 billion, making it one of the largest primary issues in India.
At least 60% of the net issue will be reserved for qualified institutional bidders, of which 5% will be for mutual funds.
Kotak Mahindra Capital Company, UBS AG, ABN Amro Rothschild, Deutsche Bank, Enam Securities, ICICI Securities, JM Financial Consultants and JPMorgan Chase & Company are book runners and lead managers for the share sale.
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