no.111
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15-Jul-2009 11:16 - posted by Guest:
Adani Power, a power project development company, promoted by Adani Enterprises Limited, flagship company of Adani Group, with total revenues of Rs 196 billion, is entering the capital markets with 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.
15-Jul-2009 11:23 - posted by Guest:
The issue will open on July 28, 2009, and close on July 31, 2009. The company filed the Red Herring Prospectus (RHP) with the Registrar of Companies, Gujarat, Dadra and Nagar Haveli (RoC) on July 14, 2009
15-Jul-2009 11:57 - posted by Guest:
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 of Rs 10 each 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.
15-Jul-2009 11:58 - posted by Guest:
The equity shares offered through the RHP of the company are proposed to be listed on National Stock Exchange of India Limited (NSE) and the Bombay Stock Exchange Limited (BSE).
15-Jul-2009 11:58 - posted by Guest:
The global coordinator and book running lead manager for the issue is DSP Merrill Lynch Limited. Other book running lead managers for the issue 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.
17-Jul-2009 21:01 - posted by sanjay0465:
At 100-110 price band we are talking about 3300Cr at the minimum for about 13.47% stake, which comes to a market cap of 24500Cr. This is for a 9900 MW planned capacity. At 2200Cr equity capital, it will have about 4:1 debt-equity, meaning about 10,000Cr as debt. With some part placed with 3i @47 and some with the promoters @70 (300Cr worth), the company should have about 14,000Cr ready cash with it. Present work is going on at 4*330MW at Mundra and it should come up soon,; already 1*330MW is in service, though not at full capacity. It should have enough funds to bring about 4000MW real soon. At production tied up at 2.60per unit, this is going to be tough. Coal prices and debt servicing is going to be the constraint. If the plant was working at full capacity, I mean 4000MW, the annual revenue at a PLF of healthy 90%, it will generate a revenue of 8200Cr if all power was sold at 2.60, of which coal+oil+transportation will take away a good portion like about 5000Cr and another 1000Cr on maintenance plus staff cost and another 1500Cr on debt interest. So till the capacity of 4000MW is achieved, which is not going to be in next 3-4 years, the company is not coming into profits. Even after that, the internal cash accruals would service the newer capacit as for 9900MW projection, without increasing any more equity, it would require 55,000Cr roughly and after deducting this 14000 Cr and some additional debt that it might raise for getting to 4000MW as calculated, it will require about 30000Cr more debt which is huge. Internal accruals are not going to be huge in the initial years and the trouble is the same as it was with reliance power: too much equity brought in at very low price, thereby risking the rewards to general public which will get in only through the IPO route. All in all the plans are ambitious, but there is little for small investors pitching in now. May look at it as a listing bet, but for long term, there are other good companies available. Better bet is the parent co. Adani enterprise which even at 807 is a better bet, with a 24 Cr equity and holding 153Cr shares in Adani Power, it comes out to 6 shares of Adani Power for each share in Adani Enterprise and at IPO value it equals Rs600. Add to it its holding in Mundra Port and you know why it is buzzing. Invest for good gains in short term and in very long term. The medium term outlook is bleak.
