Mumbai: Bhilwara Energy Ltd plans private placement of more shares and listing on the stock exchanges to fund expansion, a large shareholder and group firm, RSWM Ltd announced in a statement.
Yarn maker RSWM owns 24.2% of Bhilwara Energy, which operates a 86 megawatt hydel power project and is spending Rs170 billion to set up a 2,800 megawatt plant.
In 2007, Bhilwara Energy sold a 8.5% stake to New York Life Investment Management India Fund and WIH Holdings, a subsidiary of Wachovia Corp for Rs1 billion.
India is investing heavily in the power sector to bridge a near 12% fall in peak hour demand. Power firms are selling shares to fund expansion.
Reliance Power raised $3 billion in an initial public offer that closed last week. JSW Energy, Ispat Energy and Sterlite Energy are some the other firms considering an IPO.