Great Eastern Energy gets Sebi go-ahead on IPO

Great Eastern Energy Corp, a coal-bed methane explorer, has received market regulator Sebi's go-ahead to raise funds through an initial public offer (IPO).
The company, in September last year, had filed its draft red herring prospectus (DRHP) with Sebi for the proposed public offer.
In a regulatory filing to London Stock Exchange, Great Eastern Energy Corp said it is "pleased to announce that in relation to the DRHP of the company, the Sebi has vide its letter dated March 5 has given its final observation on the DRHP filed with Sebi."
"The company will endeavour to take all the appropriate steps to list its shares on the Indian stock exchanges at the earliest, subject to receipt of requisite approvals, market conditions and other considerations," the filing added.

The regulator's observations are necessary for the companies to launch any public offer.
According to initial papers, the company plans to come with a public issue of up to 82 lakh equity shares of face value of Rs 10 each.

The issue comprises of fresh issue to the public of 78 lakh shares and an offer for sale of up to 4 lakh shares (offer for sale) by YKM Holdings International, it added.
Earlier in December 2008 as well, the company had filed papers with Sebi to raise funds through IPO. The company was expecting to mop-up Rs 400 crore through the public issue.

Deutsche Bank Trust Company Americas has 61.99 per cent stake in Great Eastern Energy Corp, while YKM Holdings Pvt Ltd and YKM Holdings International Ltd has 26.34 per cent and 10.53 per cent holding respectively in the company.
The London-listed company produce natural gas from coal seams, commonly known as coal bed methane (CBM), in India. It focuses on the exploration, development, production, distribution and sale of CBM.
The company plans to use proceed garnered from the fresh issue for drilling and completion of CBM wells in the Raniganj (South) block and for general corporate purposes.
For the fiscal year 2013, the company had reported a profit after tax of Rs 35.84 crore and a revenues of Rs 160.66 crore.

ICICI Securities is the book-running lead managers for the IPO, while Karvy Computershare is registrar to the issue.