Mumbai: Coal washeries operator ACB India is planning to raise up to Rs1,100 crore through initial public offerings (IPO) and offer for sale (OFS) routes in the third week of March this year.
“The company has received all the necessary permissions and is set to hit the capital market in the third week of March with IPO aggregating Rs575 crore and remaining offer for sale,” ACB India chairman and managing director Rudra Sen Sindhu told PTI.
Global private equity major Warburg Pincus is expected to sell 8.8% stake in ACB India through an offer for sale out of its total 22% stake. The company proposes to use IPO proceeds of around Rs1,100 crore from the offering to develop pit-head power plants close to its beneficiation facilities.
ACB India plans to commission two power projects of total 900 MW power generation capacity in Chhattisgarh by 2014, entailing total investment of about Rs4,000 crore, Sindhu said.
The company, with an installed capacity of 500 MW, has another 3,000 MW of power projects in various stages of construction, implementation and development. The company also plans to bid for coal blocks as and when the government decides to auction them. The company has already pumped about Rs1,100 crore in both the plants. The coal linkages to these power plants would be supplied by Coal India Ltd.
The company had forayed into power sector in 2007 with the commissioning of its first 30 MW power project in Chhattisgarh.
ACB India coal beneficiation operations also offers logistics services to its customers to manage their supply chain and delivery of raw coal from the mines to company’s beneficiation plants and washed coal from company’s plants to their sites.
The company sources majority of the coal rejects it needs for its operational power plant in Chhattisgarh from their coal beneficiation business.
ACB India also sell coal rejects, reprocessed coal rejects, coal rejects blended with imported coal or with coal (both processed and unprocessed) purchased through the e-auction process conducted by Coal India Ltd subsidiaries.
The company considers its coal beneficiation operations, power generation operations and sale of coal to be an integrated business.
ACB India plans to expand the aggregate design beneficiation capacity, on proportional basis, to 93.61 million tonnes per annum by the end of fiscal 2017. The company’s plants are located at Chhattisgarh, Orissa, Maharashtra and Andhra Pradesh.