The Orissa government has decided to divest 26 per cent of its stake in the Orissa Power Generation Corporation (OPGC) as a part of the reform measures in the power sector.
The divestment will be through a combination of fresh equity infusion and the sale of existing shares.
The Orissa government will float a public issue to enhance the equity base of the company by 8 per cent and offload 18 per cent of the enhanced equity base, according to a press release.
The new shareholders of the company will be entitled to first right of refusal for any further divestment.
DSP Merrill Lynch has been appointed the lead manager to the issue. Currently, OPGC has a share capital of Rs 459 crore.
The government has invited bids from domestic as well as foreign companies. However, the companies either individually or as part of a consortium should have a power generation capacity of 200 MW or have a net worth exceeding Rs 300 crore.
Companies managing funds to the tune of Rs 300 crore too have been allowed to bid. The last date for collection of bid documents is November 27.
OPGC currently has a 420 MW coal fired plant at Ib valley in Orissa and is planning to doubling the capacity.
The two units of 210 Mw each were commissioned in 1994 and 1996 respectively at a cost of Rs 1135 crore.
The company located close to the pithead has a 30 year power purchase agreement with the Grid Corporation of Orissa.
