Rajiv Rattan takes full control of Indiabulls Infra and Power

Indiabulls Infrastructure and Power has said its promoter Rajiv Rattan is infusing Rs.360 crore in the company in a preferential equity allotment after buying the stakes of two others in separate transactions.

In the restructuring of the Indiabulls Group, Rattan, the founder-chairman, bought the entire stake of Sameer Gehlaut and Saurabh Mittal in the holding company, Indiabulls Infrastructure and Power, in separate transactions.

The group nevertheless said Rattan and Mittal continue to hold 15 percent in Indiabulls Housing Finance, 18 percent in Indiabulls Securities, and a major stake in Indiabulls Real Estate valued at around Rs.3,000 crore.

This investment in preferential equity of Indiabulls Infrastructure and Power has been at a premium of 30 percent to the Friday closing price of its shares at Rs.9 per share, the group added.

Commenting on the current scenario, the group said in view of the recent positive policy decisions and proactive approach by central government in resolving power sector issues, the worst seems to be over and things are looking up for the sector.

"I feel that policy vacuum in power sector in bottoming out with the current proactive central government and I have firm belief in the long term prospects of power sector in India," said Rattan.

The group said the Maharashtra energy regulator in its order of Aug 20 has allowed the company to use imported coal to make up for the coal supply shortfalls of Coal India, while permitting some compensation for additional costs.

This order came in light of the decision of the Cabinet Committee of Economic Affairs in 2013 to compensate power generation companies for any deficit in domestic coal supplies through coal linkages of Coal India.

Indiabulls Power has some 5,400 MW capacity under execution, comprising of two plants of identical sizes at Amravati and Nashik in Maharashtra. The company's installed capacity is 810 MW and hopes to achieve 2,700 MW by December 2015.