Adani Power to hit capital market on July 28

Adani Power, part of the diversified business group Adani enterprises, is likely to hit the market with its initial public offer (IPO) on July 28 to raise Rs 2,200 crore for funding expansion plans.

Market regulator Sebi has approved the company's initial public offer, a company official said, adding the issue is likely to hit on July 28.

The company will offload 33.7 crore equity shares through the IPO after which the promoter holding in the power firm will come down to about 73.5 per cent.

The company is expected to use the proceeds from the IPO to fund its two thermal power plants in Gujarat, one in Mundra and another in Tiroda, totaling 6,600 Mw capacity.

Besides, the overall debt requirement for the two projects is Rs 22,000 crore, which has been arranged from the State Bank of India, ICICI Bank, Power Finance Corporation (PFC) and Rural Electrification Corporation (REC).

While SBI is lending Rs 16,000 crore, ICICI Bank would provide Rs 1,200 crore. PFC and REC are lending Rs 2,600 crore and Rs 1,500 crore, respectively.