In order to meet the fund requirements for the beleaguered Ratnagiri (erstwhile Dabhol) power plant, the developers of the project have planned an initial public offering of about 25% equity shares by the end of 2008. The project is being executed by Ratnagiri Gas and Power Ltd (RGPPL), a joint venture between state-run GAIL India and NTPC Ltd, which owns the 2,150-MW power plant and the adjoining liquefied natural gas (LNG) import terminal.
Speaking to reporters on Tuesday, RGPPL chairman RK Goel said that an initial public offer (IPO) to raise Rs 1,000 crore was planned. ?The company plans to use the IPO proceeds to pre-pay the debt it has taken from the Power Finance Corp (PFC) and NTPC,? he said. RGPPL had taken Rs 350 crore as loan from the PFC for the completion of the power plant and the LNG import terminal. NTPC also had sanctioned a loan of Rs 500 crore of which Rs 150 crore has been drawn.
Goel said that the IPO will be followed by a Rs 500-crore private placement of equity shares which was likely to be subscribed by the lenders – IDBI, ICICI Bank, SBI, Canara Bank and IFCI, which who have wished to convert part of their Rs 7,011-crore term loan into equity. According to Goel, ?In the first instance, this month the board of RGPPL will consider changing the character of the company from a private company to that of a public-limited one. After that, it will apply to the Registrar of Companies for a certificate for commencement of business as public limited firm followed by the issue of the IPO.?
Out of the total share capital of Rs 4,000 crore, promoters GAIL, NTPC, the Maharashtra State Electricity Board (MSEB) and other financial institutions have so far contributed Rs 2,985 crore and the balance is to be raised through the IPO.
The Dabhol plant will be fully operational by April when the third generating unit is commissioned, Goel said, adding that currently, two units were generating about 1,100 MW electricity.