SPCL to enter capital market

Mumbai, June 18 (UNI) Hyderabad-based Suryachakra Power Corporation Ltd (SPCR) will enter the capital market on June 25 with a public issue of 3,40,00,000 equity shares of Rs ten each.

The issue is made through the 100 per cent Book Building process and the price band is Rs 17 to Rs 20 per share. The issue closes on June 29.

Talking to reporters, SPCR managing director Dr S M Manepalli said ''The objective of the issue of funds to invest in MSM Energy Ltd, one of the subsidiaries of the company to enter into power trading business, to meet additional working capital requirements and to meet issue expenses. Suryachakra's two wholly-owned subsidiaries --Lahari Power and South Asian Agro -- are setting up two renewable energy (bio-mass)-based power plants of 9.8 mega watt each in Chhattisgarth.'' ''The third subsidiary MSM Energy Ltd will set up two renewable energy-based power plants (biomass) with capacity of 10 MW each in Parbhani and Amravati districts of Maharashtra. For all the projects PPA's have been signed with respective States. All the four power plants are eligible for carbon credits. Suryachakra has obtained a Category ''A'' license to undertake power trading activity,'' he added.

Meanwhile, SPCL director M V S Nageswara Rao said ''Suryachakra has set up a 20 MW power plant in Andaman&Nicobar in 2003 under build own operate and maintain basis under a PPA valid for 15 years and extendable for a further period of 15 years.'' ''The power plant was constructed by Reliance Energy Ltd under an EPCC, who holds 4.82 per cent stake in the Company through its affiliates. The operations and maintainance of the plant is being looked after by Caterpillar Commercial Pvt Ltd. The company's IPO is to part finance the equity investment in MSM Energy Ltd, a wholly owned subsidiary which is setting up 2 per cent 10 MW power plants in Maharashtra, to meet the working capital requirements for power trading and to meet additional working capital requirements for its operations,'' he added.

UNI