ICPL to go for Rs 600-cr IPO this year

Iffco Chhattisgarh Power Ltd (ICPL) today said it will launch its Initial Public Offering (IPO) to raise Rs 600 crore by the end of the 2011-12 fiscal.

"ICPL is the first power company in the Iffco ( Indian Farmers Fertiliser Cooperative) group that will go for IPO this year," fertiliser cooperative major IFFCO managing director US Awasthi said in a media briefing here.

The power company will raise about Rs 600 crore from the capital market to fund its power project at Surguja district, Chhatisgarh, which is under construction, he said.

Awashti further said that ICPL may offer 5-10% discount on the final IPO price to retail investors, farming community, cooperators and people of Chhattisgarh, subject to approvals by the market regulator.

"ICPL will start the ground work for IPO to meet the necessary regulatory approvals soon," Awashti said, adding the project with 1320 mega watt capacity will cost Rs 7,544 crore.

ICPL, which is a JV between Iffco and Chhattisgarh State Electricity Board (CSEB), has acquired land for the project, he said adding statutory clearances and power purchase agreement was also in place.

Asked if investors will be attracted to buy share of the power plant which is targeted to be commissioned in 2015, ICPL Chief Executive Office SP Yadav said, "Iffco has name and we are confident of getting better price".

The company is yet to appoint a banker for IPO, he added.

Iffco is one of the largest producers of chemical fertilisers in the country.

The cooperative has expanded its existing units, set up joint venture companies overseas and diversified into new sector.