Orient Green Power to IPO in July
“We want to be utility company, a NTPC of the renewable space”, said Chennai based Orient Green Power Company’s executive vicechairman and CEO T Shivaraman. OGPC has operating assets of 193.1 Mw in the renewable sector which makes the company the largest power generator from renewable source in the country and it is planning to scale up its operations to 1,000 Mw by the 2013. To finance the company’s ambitious plans, it is planning to raise Rs 900 crore through initial public offer (IPO) and it has filed draft red herring prospect (DRHP).
Shivaraman said, “We hope to come out with our IPO the market by end of July or early August. Our’s is country’s largest independent renewable energy company with 152.6 Mw of wind energy projects and 40.5 biomass capacity. Going forward we plan to increase wind capacity to 622.0 Mw and 178.5 of biomass projects and 15 Mw of small hydro projects. it will be a 70 :30 debt to equity ratio and it has already tied up finances for 450 Mw
The company is in the process of consultation with financial institutions for tying up finances for the rest of the capacity. The equity part will come from IPO proceedings and internal accruals. Speaking about company’s plans to enter into the solar sector Shivraman said, “We definitely have plans to enter into solar space but not at this juncture as we feel costs are too high but sector is developing very rapidly, lot of R&D is taking place which will bring down the costs.”
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