Mumbai: The Rs 675-crore initial public offering from diversified A2Z Group, which is into renewable energy generation, power distribution, municipal solid waste management and facility management, will hit the primary markets on 8 December, the Delhi-based firm said on Monday.
The issue will close on 10 December and is priced at Rs 400-410 a share, which has a face value of Rs 10, company promoter and managing director Amit Mittal told newsmen.
“The IPO proceeds will be used for expanding our solid waste management plants and funding green energy plants, and not for any working capital requirements of our EPC business, which is the main revenue earner now. We will be listing on the BSE and NSE at the earliest after the float,” Mittal said.
The A2Z Group, which has investors in the likes of ace investor Rakesh Jhunjhunwala, the New York-based Lexington, and Beacon Capital, will be divesting close to 30% through this floatation.
Promoter Mittal’s holding will come down to a little over 30% post-issue from the current 48.13%, while Jhunjhunwala, who holds 21.03%, will dilute a tad over 4% through the issue.
Jhunjhunwala had in July 2006 picked up 30% in the Delhi-based company for Rs 20 crore, and had then “gifted” 10% to his brother and mother-in-law, said the renowned investor.
While up to 1,00,000 shares from the promoter-holding that will be on sale will be reserved for employees, up to 50% of the overall share up for sale will be reserved for qualified institutional buyers. Our of this 30% will be reserved for anchor investors, and 5% for mutual funds, the company said.
While the company will divest 67,500 million shares, the existing investors will divest 45,56,193 shares, through the issue, which has Care IPO Grade 4 rating.
Detailing the renewable energy plans, Mittal said, “the IPO proceeds will be used to fund the upcoming eight biomass-based power plants in Punjab and Rajasthan; to partly repay a loan from L&T Infra Finance; and general corporate purposes,” Mittal said.
Of these eight plants, three of 15 mw each capacity are in Punjab and the reset with 15 mw each capacity are Rajasthan. Out of this 120 mw, 60 mw will be commissioned by March, Mittal informed.
IDFC Capital, BofA Merrill Lynch, SBI Caps, Enam Securities, and ICICI Securities are the lead managers the issue.