Monnet Power, a subsidiary of steel-maker Monnet Ispat, is gearing up for an initial public offering (IPO) by June, 2012, for the sale of 20 per cent equity.
Last week, Blackstone Group bought a 12.5 per cent stake in Monnet Power for Rs 275 crore.
However, the company is yet to put a number to the amount it will raise through its IPO, which can be expected in about two years from now, The sum will be utilised towards brownfield expansion.
"We want to list Monnet Power in two years from now... between January, 2012, to June, 2012, we will sell 20 per cent stake," company Chairman Sandeep Jajodia told PTI.
Monnet Power is currently executing a 1,050 Mw (2x525 Mw) thermal power project at Angul, in Orissa. The first 525-Mw unit of the project is likely to be commissioned by June, 2012, and the second by September, 2012.
The company also plans to set up three more power projects in the country -- a 1,320 Mw coastal project in Gujarat, a 250-Mw plant in Raigarh and another 525-Mw unit at its Orissa plant.
"We are planning to set up 2,000-Mw worth of projects, for which the work is underway," Jajodia said, adding that the company will definitely require more funds and hence, the IPO proceeds will be used for the same.
As part of its diversification plans, Monnet Power is looking at acquiring coal properties abroad.
"We are looking for coal mines in Indonesia and South Africa," he said.
