Bses Likely To Float Rs 100 Crore Preference Issue

Power major BSES Ltd is planning to float a preference share issue of Rs 100 crore.

The company plans to utilise the proceeds to meet working capital expenditure and augment its long term funds.

BSES is seeking shareholders' approval for the move at the company's annual general meeting (AGM) on August 30.

A senior BSES executive said, "This is only an enabling resolution. We will float the issue only when the market conditions are right."

The face value of the issue will be Rs 100 and it will be issued at par or at a premium depending upon market conditions.

The company is also planning to come out with another offering of $200 million which could be raised either from the domestic or international markets.

The company is examining the possibility of going in for an ADR, GDR or another issue of preference shares.

Earlier, BSES had obtained shareholder approval at its AGM in July, 1999 for going in for a $125 million offering.

The company has not exercised this option thus far and is now planning to scale this up to $200 million.

BSES has chalked out an ambitious corporate plan for 2002-2012. It plans to increase its generation by 9,000 mw, foray into transmission business by developing three transmission systems and add five more distribution networks.

The company at present distributes power at three zones in Orissa and a large part of Mumbai.

The company has also leveraged its huge distribution network in Mumbai to set up an optic fibre network and has launched in Internet service christened Powersurfer.

As a part of its corporate plan the company will also look at setting up coal washeries and getting into captive coal mining besides expanding its role in the telecom sector.