The QIP is expected to be a precursor to the IPO. Property developer Indiabulls Real Estate (IBREL) today said its board had approved a plan to raise $600 million (Rs 3,000 crore) through qualified institutional placement (QIP) of securities.
Investment banking sources said the company was expected to use the QIP proceeds to fund its power projects, mainly a 1,320-megawatt project planned in Amaravati in Maharashtra.
The QIP was expected to be a precursor to the initial public issue (IPO) being planned by the company, sources said.
The company had called an extraordinary general meeting on May 18 to seek shareholder nod, the company said in a statement to the Bombay Stock Exchange today. Gagan Banga, spokesperson for the Indiabulls group, said: “It is just an enabling provision to be able to raise equity or debt at an appropriate time. As management, we want to take shareholder approval to raise funds.”
Indiabulls Power Services had raised Rs 1,600 crore last year from LN Mittal and Farallon Capital by divesting 28.6 per cent equity to pursue its plans in the power sector. The company plans to build two mega thermal power plants in Maharashtra with an aggregate capacity of 3,960 Mw. It also has a memorandum of understanding with the government of Arunachal Pradesh to construct four medium-sized hydro electric projects in the state.
Indiabulls Power Generation Ltd (IPGL) has plans to set up a pit-head coal-fired Bhaiyathan thermal power project in Chhattisgarh. Indiabulls Power Services had won the bid for the 1,600 Mw Bhaiyathan project and a 350-million tonne coal block in Chhattisgarh, defeating ten leading power producers, including Reliance Power and Tata Power.
Source: Business Standard
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