The Hindu : Business : Ratnagiri Gas plans Rs. 1,000 crore IPO

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Wednesday, Mar 12, 2008
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Ratnagiri Gas plans Rs. 1,000 crore IPO

Special Correspondent

Public issue to be followed by Rs. 500-crore private placement

NEW DELHI: The beleaguered Dabhol power plant, rechristened as Ratnagiri Gas and Power Private Limited (RGPPL), is likely to go public with an initial public offering of Rs. 1,000 crore by the end of the year.

The company will also change its character from private to public limited.

Talking to newspersons here RGPPL Chairman R. K. Goel said the company was planning an IPO of Rs. 1,000 crore but only after it switched to being a public sector entity.

The company, which owns the 2,150 MW power plant and the adjoining LNG terminal, is a venture of GAIL India and National Thermal Power Corporation (NTPC).

Mr. Goel said the board of RGPPL would consider changing its character from a private company to a public limited one this month. Out of the total share capital of Rs. 4,000 crore, promoters GAIL, NTPC, the Maharashtra State Electricity Board and financial institutions had so far contributed Rs. 2,985 crore and the balance was to be raised through the IPO, he added.

The company plans to use the IPO proceeds to pre-pay the debt it had taken from the Power Finance Corp (PFC) and NTPC.

Mr. Goel said the IPO would be followed by a Rs. 500-crore private placement of equity shares. “The plant will be fully operational by next month when the third generating unit is commissioned. At present, two units are generating about 1, 100 MW electricity,” he remarked.

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