Manoj Jayaswal-led Abhijeet Group, which is being probed by the Central Bureau of Investigation (CBI) in connection with the controversial coal block allocation, has withdrawn initial public offering (IPO) plans for its power unit to raise up to Rs 1,375 crore.
DSP Merrill Lynch, the lead manager for Abhijeet Power’s IPO, informed the Securities and Exchange Board of India (Sebi) in a letter dated September 25 that the issue has been withdrawn, information available on the market regulator’s website showed.
CBI is probing AMR Iron & Steel, an arm of Abhijeet Group, for alleged misrepresentation of facts while seeking allocation of the Bander coal block, about 125 km from Nagpur.
| CBI is probing Abhijeet Group in Coalgate matter |
| Abhijeet Power looked to raise Rs 1,375 cr from IPO |
| Company wanted to use IPO proceeds for power projects in Jharkhand & Bihar |
"Abhijeet Power (APL) is setting up power plants in the state of Maharashtra, Jharkhand and Bihar through its subsidiaries and JV aggregating capacity of 2761 MW. Out which 271 MW in Maharashtra is operational and balance 2400 MW is under construction. All projects have achieved debt closure and for part funding of equity for power projects at Jharkhand and Bihar, APL had filed DRHP with Sebi on June 30, 2011 to raise equity capital of Rs 1,375 crore," said a spokesperson of Abhijeet Power.
"Since then Promoters have infused additional funds to meet project’s requirements, resulting into lower requirement of equity from IPO. Further, any issuance of equity shares post DRHP to promoters will result into change in capital structure and require fresh filing of DRHP. In view of the same, we will again file DRHP with Sebi subject to suitable market conditions, receipt of requisite approval and other considerations," he added.
Abhijeet Power had filed draft offer document with Sebi for its IPO in June 2011. The company was looking to raise Rs 1,375 crore through the issue.
The company was also considering to raise up to Rs 500 croee through a pre-IPO placement of up to 333.33 million shares.
Abhijeet Power had also said in its draft document that it might issue and allot up to 148 million shares to its promoter, Abhijeet Mining, at a price of Rs 15 a share on a preferential basis.
Apart from Jayaswal, Abhijeet Mining and Corporate Ispat Alloys are the other two promoters of Abhijeet Power.
DSP Merrill Lynch, Enam Securities, Axis Bank, IDFC and SBI Caps were the merchant bankers for the public offering.
Abhijeet Power is currently developing three thermal power projects with a combined installed capacity of 2,671.6 MW in the states of Maharashtra, Jharkhand and Bihar. It was planning to use funds raised through the IPO for its power projects in Jharkhand and Bihar.