Thursday, August 19, 2010

Avantha Power IPO - Analysis, Recommendation, Subscription, Allotment, Listing

Analysis:
Avantha Power and Infrastructure, a part of the Gautam Thapar promoted Avantha Group aims to raise Rs 1,250 crore through an IPO. It is a power generation company with 191 MW of operational thermal power capacity, 2,400 MW of generating capacity under various stages of implementation and 1,320 MW of generating capacity under planning spread across India.

The IPO will open on October 11, 2010.

The objective of the issue are to - part finance the construction and development of Chhattisgarh Power Project Phase I; part finance the construction and development of Madhya Pradesh Power Project Phase I; and fund expenditure for general corporate purposes.

Promoter group holds 99.69% stake in the company, including 31.61% stake of Crompton Greaves, 27.88% of SFSL, 19.92% of SICL and 11.37% of BPHL. The promoters held about 41% in Crompton Greaves earlier, which was diluted to PE players in Avantha Power to fund their ongoing capex programme.

The book running lead managers to the issue are Enam Securities Pvt Ltd, Axis Bank Ltd, Citigroup Global Markets India Pvt Ltd and Kotak Mahindra Capital Company Ltd.

Recommendation:
Watch out for the recommendation.

Subscription:
Watch out for the subscription.

Allotment:
Watch out for the allotment.

Listing:
Watch out for the listing.

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