Wednesday, October 26, 2005

GVK Power files draft RHP with Sebi for IPO

GVK Power and Infrastructure, GVKPIL, has filed the draft red herring prospectus, RHP, with Sebi and proposes to enter capital market to support expansion plans, reports The Hindu Business Line.

According to a statement from the GVK Power, it proposes to soon enter the market with an initial public offer of 82,75,556 equity shares of face value of Rs 10 each through 100% book building process.

The GVK Power is part of the diversified GVK Group headed by Chairman, G V K Krishna Reddy with interests in power, roads, urban infrastructure, biosciences, hotels and manufacturing. The company has identified power and infrastructure sector as core areas for future growth.

GVKPIL owns 53.96% stake in GVK Industries, which manages two power plants, the 216 MW Jegurupadu phase I and the 220 MW Jegurupadu phase II to be commissioned by December 2005.

The company is entering capital market to raise funds and increase ownership in Gautami Power to 51% by subscribing to the equity of GPL which is setting up a 464 dual fuel combined cycle plant in Andhra Pradesh.

The issue will constitute 35% of the fully diluted post issue paid up capital of the company. JP Morgan Stanley and Kotak Mahindra Capital Company have been chosen book running managers.


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