GMR Energy revives plans for IPO: GMR Group has revived plans to sell shares of GMR Energy Ltd, less than two months after scrapping a proposed initial share sale. The Bangalore-based parent, GMR Infrastructure, is planning to file the draft prospectus for GMR Energy with the capital markets regulator by the end of June. On 28 April, GMR Infrastructure had told stock exchanges that it had withdrawn plans to take its energy arm public, citing “business reasonsâ€. (Live Mint)
GMR Infrastructure plans to raise $250 mn via QIP: GMR Infrastructure Ltd is looking to raise $250 million (around INR 1.5 billion) through a qualified institutional placement (QIP) as demand for stocks soar. The Bangalore-based GMR Infrastructure will begin meeting institutional investors from Monday for the QIP. GMR Infrastructure, the holding company of GMR Group, will be raising money to de-leverage its balance sheet and the proceeds from QIP will entirely be used to repay debt. (Live Mint)
Power Grid plans to raise up to INR 13,500 crore this fiscal: Power Grid Corp. of India Ltd plans to raise up to INR 13,500 crore ($2.25 billion) in 2014-15 from the domestic market through secured and unsecured bonds issued to institutional investors. The private placement of bonds will be issued in up to eight tranches. The proceeds will be used to meet capital expenditure. The company is exploring bonds with a green shoe option—an over-allotment option in case demand exceeds expectations—by way of “secured, unsecured, non-convertible, non-cumulative, redeemable, taxable and tax-free bondsâ€. The SPVs are Vizag Transmission Ltd, Powergrid NM Transmission Ltd, Unchahar Transmission Ltd and NRS XXXUI (A) Transmission Ltd. (Live Mint)
GAIL to reduce equity stake in ONGC’s project at Dahej: State-run gas utility GAIL India will cut its equity stake in ONGC's mega petrochem project at Dahej to 11.6% as project faces major cost overrun. GAIL had in 2008-09 picked up 19% stake in ONGC Petro-additions Ltd (OPaL), which is building a mega petrochemical complex at Dahej in Gujarat. The 1.1 million tonnes plant was at that time estimated to cost INR 12,440 crore ($2 billion). But since then the project cost has been revised thrice upwards - first to INR 15,870 crore ($2.65 billion) in end 2008, then to INR 19,535 crore ($3.26 billion) in June 2010 and now to INR 21,396 crore ($3.5 billion). (Economic Times)
Tata Steel plans $3 billion loan to refinance Corus-linked debt: Tata Steel Ltd, India’s biggest producer of the alloy, is in discussions with banks to raise a $3 billion (INR 179 billion) loan for refinancing debt taken to fund the acquisition of Corus Group Plc in 2007. The company plans to borrow in five- or seven-year tenor to repay debt used to purchase UK-based Corus for $12.9 billion (INR 771 billion). The funds may be denominated in US dollars and other foreign currencies. Tata Steel has the equivalent of $15.4 billion (INR 920 billion) of bonds and loans due. (Live Mint)
Courtesy: VCCEdge