Indowind Energy to raise 81 cr through IPO

NEW DELHI: Indowind Energy Ltd aims to raise as much as Rs 81 crore through an initial public offer later this month for expanding business, including setting up a wind farm project in Karnataka.

The Chennai-based company will offer 1.25 crore equity shares within a price band of Rs 55-65 per share. It will raise Rs 68.75 crore at the lower end and Rs 81.25 crore at the higher end. The IPO will open from August 21 to August 24.

"The money raised through this IPO will be invested in a plant at Chitradurga in Karnataka. The 9 MW wind farm plant will cost Rs 49.5 crore plant. The company has acquired 125.23 acres land for this purpose," Indowind Energy chairman K V Bala said here.

Asked about plans to implement its expansion drive, Bala said, "Now we are restricted to only Tamil Nadu and Karnataka because of limited funds. But with time, we will move to other states as well."

The company sells ready-to-buy wind farm projects to corporates as well as electricity to corporates and state government. The company's clients include Karnataka Breweries and Distilleries Ltd, Hindustan Coca Cola Beverages Pvt ltd, United Breweries and Delphi Automotive Systems. It posted a total income of Rs 27.75 crore and profit after tax of Rs 6.5 crores for the year ended June 30, 2007.