Financial Briefs: India and overseas

India and overseas

 Sterlite Power files DRHP for Rs 12.5 billion IPO (India)

Sterlite Power Transmission Limited (SPTL) has filed a draft red herring prospectus (DRHP) with the Securities Exchange Board of India to raise money from the primary market. The IPO will consist entirely of new equity shares with a face value of Rs 2 each, valued at Rs 12.5 billion. The IPO is anticipated to take place in the fourth quarter of 2021-22. The company may also consider a Rs 2.2 billion pre-IPO placement. It has reserved 75 per cent of the net issue for qualified institutional buyers and 15 per cent shares for non-institutional bidders. Retail investors will be allocated the remaining 10 per cent. SPTL has appointed Axis Capital, ICICI Securities and JM Financial as the bookrunning lead managers for the issue, and KFin Technologies is the registrar.

ReNew acquires two power projects of 359 MW for Rs 28.5 billion

ReNew Power has acquired renewable energy assets totalling 359 MW in Uttarakhand and Telangana at a combined enterprise value of Rs 28.5 billion. The assets are expected to generate an EBITDA of Rs 3.8 billion-Rs 4 billion annually. They include the 99 MW Singoli Bhatwari hydroelectric project (SBHEP) on the Mandakini river in Rudraprayag district, Uttarakhand, acquired from L&T Uttaranchal Hydropower Limited for Rs 9.85 billion. The acquisition marks ReNew’s entry into the hydropower sector. SBHEP was operationalised in December 2020 and is expected to have a residual life of nearly 35 years. In a separate transaction, ReNew Power signed a definitive agreement to acquire 260 MW/ 330 MWp of operating solar projects in Telangana. The projects have a 25-year PPA with Northern Power Distribution Company of Telangana Limited and Southern Power Distribution Company of Telangana Limited, and have been operating for about four years.

CIL’s capex doubles in the first quarter of 2021-22

Coal India Limited’s (CIL) capital expenditure has increased by over two times to Rs 18.4 billion in the first quarter of 2021-22, compared to Rs 8.44 billion in the same quarter last year. The company continues to step up investments in evacuation infrastructure, land acquisition and procurement of heavy equipment. CIL has achieved 94 per cent of the target of Rs 19.6 billion set for the first quarter of 2021-22. The company is focusing on strengthening the evacuation infrastructure such as rail sidings and corridors, coal handling plants, silos and haul roads. CIL has set a capex target of Rs 170 billion for 2021-22, which is 28 per cent more than that for last year. This investment includes infusing Rs 30 billion in Hindustan Urvarak and Rasayan Limited and Talcher Fertilisers Limited, and spending Rs 10 billion-Rs 15 billion on railway line construction through a joint venture company.

Powergrid board approves Rs 4.25 billion fresh equity investment in EESL

Power Grid Corporation of India Limited’s (Powergrid) board has approved a proposal to infuse fresh equity of up to Rs 4.25 billion in Energy Efficiency Services Limited (EESL). EESL is a JV company of Powergrid, NTPC Limited, the Power Finance Corporation and REC Limited.

NTPC invites offers for raising up to Rs 50 billion as rupee term loans

NTPC Limited has invited proposals for raising term loans worth up to Rs 50 billion. The last date for financial institutions to submit bids is August 26, 2021. The loans will be used to fund the capex for existing or new capacity expansion projects, including project takeovers, purchase of the Government of India’s equity share in PSUs under the disinvestment programme, renewable energy projects, coal mining and washeries, project renovation and modernisation, debt refinancing, and general corporate purposes.

IL&FS floats EoI for selling 100 per cent stake in wind farm project

Infrastructure Leasing and Financial Services Limited (IL&FS) has invited expressions of interest (EoIs) for eligible investors for the purchase of 100 per cent stake in Ramagiri Renewable Energy Limited (RREL) and the fixed assets of IL&FS Energy Development Company (IEDCL). IL&FS holds 95.54 per cent of IEDCL’s total issued, subscribed and paid-up share capital. RREL is a 100 per cent subsidiary of IEDCL, which owns and operates a 6.5 MW wind farm at Ramagiri in Anantapur district, Andhra Pradesh (which has not been operating since April 2019).

Globeleq completes refinancing for energy plants totalling 238 MW (South Africa)

Globeleq, a South African independent power producer, has completed the senior debt refinancing of three of its renewable energy plants, totalling 238 MW. Absa Bank, a part of financial services company Absa Group Limited, served as the lead arranger and sole underwriter for the $362 million debt financing package. The deal is the second refinancing of renewable assets under the Department of Mineral Resources and Energy’s Independent Power Producer Office Refinancing Protocol.

JSPL accepts revised offer from Worldone to divest its 96.42 per cent stake in JPL

Jindal Steel and Power Limited (JSPL) has accepted Worldone Private Limited’s (WPL) revised offer of Rs 74.01 billion, to divest its 96.42 per cent stake in Jindal Power Limited (JPL). Of the total, Rs 30.15 billion will be payable in cash and the remaining Rs 43.86 billion will be covered through the assumption and takeover of JSPL’s liabilities and obligations in relation to intercorporate deposits and capital advances paid by JPL to JSPL.