Mumbai: GVK Power and Infrastructure plans to raise funds for its airports business by December via stake sale to private equity firms, a top official told Reuters on Thursday.
The firm is already in talks with PE players to raise $250-$300 million for its energy business, chief financial officer Issac George told Reuters over the telephone.
The airport fund-raising “will be via PE (private equity). We have not crystallised it, but it will be something similar to what we are raising in energy,” he said.
“By the end of December we will certainly raise the airport money,” he added.
He, however, declined to comment on the specifics of the discussions with private equity firms for stake in energy unit, GVK Energy Ltd, but said deals could be finalised by the “month-end”.
GVK, which has power units with over 900 MW capacity, intends to use the proceeds from the stake sale to expand capacity upto 4,500 MW by 2013/14, he said.
The Hyderabad-based firm intends to list GVK Energy “over a period of time”.
“We will eventually have to list the company to provide an exit option (to PE firms).”
UMPP, Coal Mines
The firm is bidding for ultra-mega power projects -- which have a capacity of 4,000 MW at a single location -- in Orissa and Chhattisgarh, he added.
“The whole concept of UMPP has changed now...They are allowing you to mine coal and use it for additional capacity and also for commodities trading,” he added.
Four such projects are already under development in India, while bids for Orissa and Chhattisgarh UMPP have been called for by Power Finance Corporation which is co-ordinating the bidding process.
The firm is also planning to bid for coal mines in the country, he added.
GVK is also expecting to report consolidated revenue in the range of Rs2,200-2,500 crore in FY11, of which “80%... will come from power projects”.
GVK Power is also expecting to monetise over 1 million square feet of land near Mumbai airport by the fourth-quarter of the financial year, he said.
It is awaiting approvals from Mumbai Metropolitan Region Development Authority, the regional authority in the metropolis, for development of the land.
The company, which has a present orderbook backlog of Rs20,000 crore, is also looking at bidding for certain major road projects, he added.
Shares of the company closed up 1.08% at Rs46.95 a share in a Mumbai market that closed up 0.18%.