Sterlite Energy, a subsidiary of diversified base metal producer Sterlite Industries, plans to raise Rs 5,100 crore in share sale through an initial public offer (IPO). A company statement said it had filed a regulatory application for the IPO.
Shares of Sterlite Industries gained 3.4 per cent to Rs 771.5 a share on the Bombay Stock Exchange following the announcement. A successful IPO would make it the second largest Indian offering in recent times, after NHPC’s Rs 6,000 crore IPO.
Analysts are cautious about the IPO pricing, as three of the past four large IPOs have had weak openings despite strong subscriptions. Indiabulls Power opened below the issue price today and fell as much as 22 percent in early trade.
Sterlite Energy is engaged in the commercial power generation business and is currently developing thermal power projects in Jharsuguda, Orissa and Talwandi, Punjab, with a combined proposed installed capacity of 4,380 Mw. The company said it planned to use the proceeds to part-fund two thermal power plants. Kotak Mahindra Capital, Enam, JP Morgan and Morgan Stanley are among the arrangers for the offer.
The proposed IPO of equity shares of Rs 10 each will be offered at a premium, to be decided later. The shares are proposed to be listed on the BSE and the NSE.