ACB (India) Ltd, formerly Aryan Coal Beneficiation, plans an initial public offer (IPO) before October this year.
The company, which also generates power, is likely to raise around Rs575 crore from the IPO and also make an offer for sale for around 12.5% equity.
ACB had filed a draft red herring prospectus with the Securities and Exchange Board of India in May 2011 but got a clearance only in October last year.
Warburg Pincus, which had invested $100 million in various tranches since 2006 and holds a 22% stake, will dilute close to 9%. Co-promoters, the Mrig family, will sell about 3%, and Capt Solanki 0.5%. Currently, the Mrigs have a 12% stake, Capt Solanki 14% and Capt Sindhu & family 51%.
ACB, along with its subsidiaries and associates, is the largest coal beneficiation operator in the private sector with a capacity of 62.35 million tonne per annum. But its utilisation is 34 million tonne as, out of 16 washeries, only 12 are operational now.
ACB also operates the largest coal beneficiation plant in India in Dipka (Chhattisgarh), with a capacity of 12 million tonne.
The company forayed into power in 2007 with the commissioning of its first 30 mw project in Chhattisgarh near the Spectrum Washery, which it bought from Reliance ADAG. It also operates another 270 mw plant in Chakabura near its Dipka washery.
A 300 mw plant is in planning stage in Korba near Maruti Clean Coal Washery, where Capt Sindhu bought a 45% stake, said a source. Another 600 mw is under implementation in Raigarh after ACB bought land and coal linkage given to TRN Energy, promoted by New Delhi-based industrialists Atul and Sanjay Jain, the source added.
Last fiscal, the company clocked a profit after tax of Rs290 crore, in which the washery division contributed Rs250 crore, while power division contributed Rs40 crore.