State-run Energy Efficiency Services Ltd (EESL) may go for an IPO to raise about Rs200 crore by diluting 20% stake before the end of this current financial year, a top official of the company said on Wednesday.
The company is also planning to invest Rs6,000 crore as capex comprising Rs1,200 crore equity and Rs4,800 crore debt during the current year, EESL’s managing director Saurabh Kumar said. Kumar said the debt of Rs4,800 crore would be raised through various methods, including $100 million green/masala bonds from the UK market.
“Out of Rs6,000 crore, Rs1,200 crore will be our equity. Rs4,800 crore is what we have to raise as debt. We have paid up capital of Rs460 crore. Another Rs530 crore will be raised from the promoters,” Kumar told PTI.
“Another Rs200 crore we are looking at perhaps, and IPO towards the end of the financial year. We will dilute around 20% stake. We expect some premium also. We are going to select a banker or a financial agency for the IPO in the next one month or so,” he said.
EESL is a joint venture of NTPC Ltd, Power Finance Corp, Rural Electrification Corp and PowerGrid. It was set up under the ministry of power to facilitate implementation of energy efficiency projects. He further said that the company is awaiting the current rating AA to be upgraded to AAA before launching the overseas bonds.
Replying to a query, Kumar said the company clocked Rs1,200 crore revenues last year and expects to touch Rs2,500 crore during the current financial year. On the current ongoing projects in Telangana, he said they tied up with Greater Hyderabad Municipal Corporation (GHMC) wherein about 4.5 lakh street lamps in the city will be replaced with LED bulbs by EESL in six months without charging a penny from the civic body.
GHMC, in return, will pay the amount in seven years without any initial investment. “We will be spending about Rs270 crore on the project. GHMC will not invest anything in the project. They will make the payment out of the power bills they save after using LED bulbs. We will offer free service also during the period of contract,” he explained. Kumar said as much as 53% power with the use of a LED bulb, against a conventional one.
Source: Mint