Infrastructure major Lanco Infratech is planning to raise $1 billion by selling non-core assets and diluting equity in some of its subsidiaries by the end of this fiscal, a top company official said today.
The fund infusion will bring back the debt-equity ratio of the company to healthy levels of 4:1, Lanco Chairman L Madhusudhan Rao told reporters on the sidelines of the company's annual general meeting held here.
"We are looking at raising $750 million as equity for thermal, coal and hydel power projects. If you look at, for instance solar power, we are looking at another $150 million. I think at the group level, we are talking about close to $1 billion by the end of this financial year," he said.
"If we bring this billion dollars, it is going to bring back the debt equity situation at par with any other peer companies. It will be 4:1. Our assets base is one of the largest," he added.
Lanco Group is expected to operationalise power projects aggregating 9,400 MW by 2015, which will have a capex of $10 billion, Rao added.
The Group is currently having 4,480 MW power projects of thermal, hydel and solar put together under operational and another 4,888 MW power projects of all category under implementation.
Rao said the Group is looking at multiple options such as equity dilution through PE funding and selling two of the road projects.
"We have two road projects almost done and one is under construction. Both the projects which are completed, we have invested about Rs 700 crore. We want to liquidate and sell of the assets," he said.
Replying to a query, he said the process is taking long time due to market conditions.
"Definitely there will be more through PE structure. Lot of discussions are going on. All are at very close stage. We are negotiating for the valuations and expectations," he said.