Hyderabad-based Lanco Group today said it plans to increase its stake in all group companies to more than 51% and rope in a strategic partner in the holding company Lanco Infratech before going for an initial public offer (IPO). The Group is in talks with its joint venture partner Aban Lloyd to buy its 13% stake in Aban Power, which runs a 120-MW gas-fired power plant in Tamil Nadu. Besides, it is also in discussion with Globoleq of UK for buying some of its equity in Lanco Kondapalli Power, which runs the 368 MW gas-fired power plant here. "We are consolidating all our companies in holding company Lanco Infratech, in which we would retain the majority stake. We are looking for a strategic partner for the holding company as well as all the 15 special purpose vehicles," L Madhusudan Rao, chairman of Lanco Group, said. Although he refused to give the valuation of holding company or subsidiaries and how much the group planned to raise by divesting promoters' stake, a senior company official said they planned to offload 10% in Lanco Infratech for about Rs 600-700 crore. Rao said the promoters' holding in all the subsidiaries would be raised to at least 51%.The balance would be offloaded to strategic partners. Lanco would buy half of the stake of Aban Lloyd, which currently has 26% in Aban Power, he said. The group is also in talks with Globoleq, UK to buy part of its stake. Globeleq currently owns 25% in Lanco Kondapalli, while Lanco has 34%. The rest is shared by Genting of Malaysia (30%) and Doosan of Korea (11%). |