Adani Power plans IPO, seeks FIPB approval

New Delhi: Adani Power, which is planning a Rs 5,000 crore initial public offer, has sought government approval for foreign equity infusion in the company.

Adani will issue 29.69 crore equity shares in the pre-IPO and initial public offering, representing 14.35 per cent of the post-issue paid up capital of the company.

'We file this application with the Foreign Investment Promotion Board (FIPB) for approval for the issue and allotment of up to 29,69,48,000 shares of the company through a pre-IPO placement and initial public offering for cash at a premium to eligible investors, including persons resident outside India,' Adani Power said in its application to the FIPB.

Adani Power in its August application to FIPB stated that the proceeds would be used to part-fund power projects it is constructing in Gujarat, Maharasthra and Rajasthan.

Earlier in May, Adani Power filed the Draft Red Herring Prospectus with the market regulator Sebi which is saying that 'The company is considering a pre-IPO placement of equity shares with various investors.'

The company has proposed to come out with a public issue of 29.70 crore equity shares of Rs 10 at a premium, adding that it would utilise the issue proceeds to fund its six power projects at an estimated cost of Rs 43,139 crore.