Rajiv Rattan, one of the three promoters of the India Bulls group, Sunday announced having taken control of the group's two power companies after buying out Saurabh Mittal's stake for Rs.360 crore in Indiabulls Infrastructure and Power.
"Post the reorganization within the promoters of Indiabulls Group, Rajiv Rattan and Saurabh Mittal continue to hold 15 percent stake in Indiabulls Housing Finance Ltd, 18 percent stake in Indiabulls Securities Ltd. and a substantial stake in Indiabulls Real Estate Ltd. valued at around Rs.3,000 Crore," a release here said.
After buying out Mittal's five percent holding in Indiabulls Infrastructure and Power, Rattan infused fresh equity into Indiabulls Power through his private company. Rattan will hold five percent directly in the company.
"This investment is at a 30 percent premium to the Friday closing price of Rs.9 per share," it added.
The development coincides with Indiabulls Power being allowed, last month, a Rs.1.55 per unit compensatory tariff by the Maharashtra Electricity Regulatory Commission (MERC) for using imported coal as pass through for its plant at Amravati in Maharashtra, the release added.
"The order has come under the change in law clause following an amendment in the coal distribution policy. The Cabinet Committee on Economic Affairs (CCEA) in June 2013 also allowed power procurers to pass through the increase in tariff because of use of imported coal," said Rattan in a statement.
Rattan and Mittal had in July bought out Sameer Gehlaut's 50 percent stake in Indianbulls Infrastructure and Power.
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Gehlaut took control of the three companies in July under an agreement by which the power business will not be using the Indiabulls brand name after December.
Indiabulls Power was the only listed company in the power space that would not be impacted by the deallocation of coal blocks because it did not have any captive blocks "but has dedicated domestic coal linkages from Coal India (CIL) for its entire capacity of 5,400 MW", the company said.
The company will use imported coal to make up for the supply shortfall from CIL at its Amravati plant. This will help it increase its plant load factor to above 85 percent.