BEL to raise Rs 230 cr from 11% stake sale
Bhilwara Energy will sell stake to Washington-based IFC and India Clean Energy Fund for $25 million each, to partially fund its power projects.
By ET Bureau |
NEW DELHI: LNJ Bhilwara group firm Bhilwara Energy ( BEL) will dilute 11% stake in the company to Washington-based IFC and India Clean Energy Fund for $50 million ($25 million each), to partially fund its power projects. The company will be raising around Rs 230 crore from the proposed stake sale.
“Current fund-raising will help the company attract other strategic investors and partners for its growth plans in the future. Funds will mainly be utilised for power projects in India and Nepal in the next few years,” said Ravi Jhunjhunwala, chairman, LNJ Bhilwara Group.
Bhilwara Energy is implementing power projects of 1,100 mw capacity, for which they need Rs 8,000 crore of funds over the next four years.
Post-divestment, the promoter holding in BEL will come down to around 83%. Of the promoters, RSWM — formerly known as Rajasthan Spinning and Weaving Mills — will see its holding in BEL come down from 19.5% to 17.4%, while HEG will see its shareholding fall to 25.5% from 28.9%.
BEL is a principal-holding company for all the power ventures of the Bhilwara group. The company currently has an 86 mw operating project, and a 192 mw hydro power plant is likely to become operational this month.
“The rationale behind the stake dilution is to fund our power projects under different stages of implementation,” said Mr. Jhunjhunwala.
In 2007, New York Life Investment Management India Fund, WIH Holdings and Jacob Ballas Capital had invested in BEL.
“Current fund-raising will help the company attract other strategic investors and partners for its growth plans in the future. Funds will mainly be utilised for power projects in India and Nepal in the next few years,” said Ravi Jhunjhunwala, chairman, LNJ Bhilwara Group.
Bhilwara Energy is implementing power projects of 1,100 mw capacity, for which they need Rs 8,000 crore of funds over the next four years.
Post-divestment, the promoter holding in BEL will come down to around 83%. Of the promoters, RSWM — formerly known as Rajasthan Spinning and Weaving Mills — will see its holding in BEL come down from 19.5% to 17.4%, while HEG will see its shareholding fall to 25.5% from 28.9%.
BEL is a principal-holding company for all the power ventures of the Bhilwara group. The company currently has an 86 mw operating project, and a 192 mw hydro power plant is likely to become operational this month.
“The rationale behind the stake dilution is to fund our power projects under different stages of implementation,” said Mr. Jhunjhunwala.
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In 2007, New York Life Investment Management India Fund, WIH Holdings and Jacob Ballas Capital had invested in BEL.
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