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| Edited By: KV Ramana |Source: DNA |Updated: Mar 17, 2018, 06:33 AM IST
Gayatri Projects plans to place 10-15% in wholly owned power subsidiary Gayatri Energy Ventures Pvt Ltd with private equity firms to raise about Rs400 crore.
This is to carry out its plan to partner Nagarjuna Construction Company in executing the 1,320 mw power project at Krishnapatnam in Andhra Pradesh.
As a 45% equity holder in the proposed Rs7,000 crore power project at Krishnapatnam, Gayatri would invest about Rs1,000 crore.
While the equity dilution in the power arm would bring about `400 crore, the company has decided to go ahead with a rights issue for its shareholders in Gayatri Projects to raise another Rs400 crore.
The company would pool in another Rs350 crore through commercial borrowings.
After earmarking Rs1,000 crore towards the Krishnapatnam project, the balance Rs150 crore would be used for discharging high-cost debts in the parent company.
“In addition to discharging high cost debt, we would use the residual funds for taking up new build-operate-transfer road projects and also working capital requirements,” KG Naidu, Gayatri’s CFO, told DNA.
In fact, the company has recently placed 49% stake in Thermal Powertech Corporation, its special purpose vehicle, which is setting up a 2,640 mw project at Krishnapatnam, with the Singapore-based Sembcorp to raise Rs1,042 crore.
The company is working on a blue print to expand its footprint in the power sector with an outlay of at least Rs1,000 crore.
The plan includes setting up of a 1,260 mw project in Maharashtra with an outlay of Rs3,000 crore.
“About 600 mw would be commissioned shortly in this project and the investment requirement immediately is about Rs400 crore,” Naidu said.
The company would also invest about Rs650 crore in its Thermal Powertech project at Krishnapatnam.
“For both these, the requirement is little over Rs1,000 crore. We have already invested Rs350 crore. The balance Rs650 crore would be brought in from our EPC projects and there would be no further tapping of markets for these funds,” he said.
