KVK Energy joins Indian rush to list on Brit investment market

London, May 27 : Southern India's KVK Energy, which owns and operates five power plants in that region and has secured funding to build another five, has joined other Indian companies to list on London's Alternative Investment Market.

The company, which is developing coal-fired and hydroelectric power plants for industrial consumers, will today announce its intention to list on the junior market and raise 75 million dollars to fund expansion, reports the Financial Times.

Pramod Raju, the company's non-executive director, was quoted as saying that the funds raised, would be used to build three new power plants, through which the company hopes to cash in on India's seemingly insatiable demand for energy.

KVK Energy hopes to build more energy-based plants with the money raised from Aim. The company said it would be able to generate nearly 4000 megawatt of power - or enough to power a state for a year.

The company had a turnover of 15.6 million dollars last year, which generated earnings before interest, tax, depreciation and amortisation of 5.6 million dollars.

With its decision to join AIM, the company is expecting a market capitalisation of about 325 million to 365 million dollars. KBC Peel Hunt will act as nominated adviser and joint broker.

ANI