Mumbai: Indian power equipment maker Kalpataru Power Transmission plans to raise up to $110 million by selling shares to institutions, four sources with direct knowledge of the plan said on Thursday.

The company plans to offer shares at Rs1,074.20 per shares, 1.2% lower than Thursday’s close of Rs1,086.70, said two of the sources, who did not wish to be named as they were not authorised to speak to the media.

The company plans to raise $80 million, with potential upside for another $30 million. IDFC Capital, Morgan Stanley, Nomura and Collins Stewart Inga are arrangers for the sale, the sources said.

Kalpataru, based in Gujarat, is one of the largest makers of transmission line towers in India, and competes for contracts in India as well as the west Asia and Africa with firms such as KEC International and Larsen & Toubro.

Earlier this year, its board had approved raising up to $125 million through a sale of shares. The proceeds are to be used for long-term investment in projects and expansion of manufacturing capacity.

India faces a peak hour power shortage of 12%, and firms operating in the sector have queued up to raise funds as Asia’s third-largest economy struggles to expand generation and transmission capacity to satisfy the rising demand of a high-growth economy.

Since July last year, Adani Power, NHPC, Indiabulls Power and JSW Energy have together raised about $2.4 billion through public offers, capitalising on investor interest in the sector and a booming stock market.

Earlier this month, Singapore state investor Temasek Holdings agreed to invest $200 million in the power business of GMR Infrastructure.