Net Issue Proceeds to be utilized to partly finance the construction and development of Mundra Phase IV Power Project and Tiroda Power Project being developed by the Company’s subsidiary, Adani Power Maharashtra Limited
Adani Power Limited (the “Company”), a power project development company, promoted by Adani Enterprises Limited is undertaking an initial public offering of 301,652,031 Equity Shares of Rs. 10 each for cash at a price to be decided through a 100% book-building process (the “Issue”). The Issue will open on July 28, 2009.
The Price Band and the minimum Bid Lot will be decided by the Company in consultation with the Global Coordinator and Book Running Lead Manager and announced in all editions of The Financial Express in the English and Gujarati languages and Jansatta in the Hindi language at least two (2) working days prior to the Bid/ Issue Opening Date. The Bid/ Issue closes on July 31, 2009.
The Issue would constitute 13.84% of the post-issue paid-up Equity Share capital of the Company. The Issue includes a reservation of up to 8,000,000 Equity Shares for Eligible Employees. The Issue less the Employee Reservation Portion comprises a Net Issue of 293,652,031 Equity Shares. The Net Issue will constitute 13.47% of the post-issue paid-up Equity Share capital of the Company.
At least 60% of the Net Issue will be allocated on a proportionate basis to Qualified Institutional Bidders (“QIBs”). And 5% of the QIB Portion will be available for allocation on a proportionate basis to Mutual Funds only and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders, including Mutual Funds, subject to valid Bids being received at or above the Issue Price. The QIB Portion includes Anchor Investor Portion as per the SEBI Guidelines. Further, not less than 10% of the Net Issue will be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 30% of the Net Issue will be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price.
Adani Power Limited (“APL”) has four thermal power projects under various stages of development, with a combined installed capacity of 6,600 MW, namely: (i) Mundra Phase I and II Power Project with four sub-critical units of 330 MW each and an aggregate capacity of 1,320 MW, (ii) Mundra Phase III Power Project with two super-critical units of 660 MW each and an aggregate capacity of 1,320 MW, (iii) Mundra Phase IV Power Project with three super-critical generation units of 660 MW each and an aggregate capacity of 1,980 MW, and (iv) Tiroda Power Project, which is being developed by the Company’s Subsidiary Adani Power Maharashtra Limited, with three super-critical generation units of 660 MW each and an aggregate capacity of 1,980 MW. In addition, the Company is also planning to develop two power projects with a combined installed capacity of 3,300 MW through its Subsidiaries.
The Company intends to utilize the Net Proceeds of the Issue to part finance the construction and development of Mundra Phase IV Power Project for 1,980 MW and fund equity contribution in its Subsidiary, Adani Power Maharashtra Limited, to part finance the construction and development cost of power project for 1,980 MW at Tiroda, Maharashtra.
Adani Enterprise Limited (“AEL”), the Promoter of the Company, is the flagship company of the Adani Group, with total revenues of Rs. 196,097.10 million for the fiscal year 2008. AEL is believed to be one of the largest traders of coal in India for the three years period ended March 31, 2008, with coal mining rights both in the international and domestic markets, and according to Central Electricity Regulatory Commission, for the three years period ended March 31, 2008, AEL was one of the largest power traders, by volume, in India. With the commissioning of the Company’s power projects, the Adani Group will be vertically integrated in power sector value chain through presence in related activities such as coal mining, coal trading, shipping, power generation, power transmission and power trading. Another Adani Group company, Mundra Port and Special Economic Zone Limited (“MPSEZL”), owns and operates one of the largest private sector commercial ports in India, a Special Economic Zone (“SEZ”) at Mundra and a railway line between Mundra and Adipur leading to strong synergies with the projects of the Company being set up in close vicinity.
The Equity Shares offered through the Red Herring Prospectus dated July 14, 2009, (“RHP”) of the Company are proposed to be listed on the National Stock Exchange of India Limited (“NSE”) and the Bombay Stock Exchange Limited (“BSE”).
The Global Coordinator and Book Running Lead Manager for the Issue (“GCBRLM”) is DSP Merrill Lynch Limited. Book Running Lead Managers for the Issue (“BRLMs”) are Enam Securities Private Limited, IDFC-SSKI Limited, JM Financial Consultants Private Limited, Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, ICICI Securities Limited and SBI Capital Markets Limited.
