Indowind Energy IPO opens Aug 21 to fund wind farm

New Delhi, Aug 17 (UNI) The Chennai-based Indowind Energy Ltd proposes to enter the capital market on August 21 with a public issue of 1,25,00,000 equity shares of Rs ten each through a 100 per cent book building process.

Out of this, 2,60,000 equity shares have been reserved for subscription by eligible employees of the company, leaving a net issue of 1,22,40,000 equity shares for public. The issue closes on August 24 and the price band has been fixed at Rs 55-65. The net issue would constitute 25 per cent of the fully diluted post issue paid up capital of the company.

The company's Chairman K V Bala said that in order to harness the wind energy potential on better commercial terms, the company is in the process of implementing additional capacity of nine MW Wind Farm Project at Chitradurga district in Karnataka.

The company has already acquired 125.23 acres of land for this purpose.

The company also proposes to use the proceeds of the IPO to fund the acquisition of Wind Energy Generator (WEG) from banks and it plans a foreclosure of lease with ICICI Bank Ltd and Axis bank Ltd (formerly UTI bank). The company also plans to fund its additional working capital requirements and meet the expenses of the issue.

He said in order to cut down the delay in getting cranes from third parties, the company intends to purchase two second hand hydraulic cranes of 220 tonnes capacity.

Indowind Energy supplies power to the Tamil Nadu Electricity Board and companies in Karnataka. Its client list includes Karnataka Breweries, Hindustan Coca Cola Beverages, United Breweries, H&R Johnson, Delphi Automotive, and Spicer India.

It claims to be the first company in India in the wind energy sector to get carbon credit certification from the United Nations Framework Convention for Climatic Change.

The company's total income has touched Rs 25.57 crore and profit after tax (PAT) at Rs 6.58 crore for the year ended June 30,2007 as against total income of Rs 19.83 crore and PAT of Rs 4.14 crore for the year ended June 30, 2006, he added.

UTI Securities Ltd is the BRLM, Canara Bank is the Co-BRLM and Keynote Corporate Services Ltd is the advisor to the issue.

UNI