Energy Efficiency Services Ltd (EESL), a company under the Ministry of Power, facilitating implementation of energy efficiency projects, is considering an Initial Public Offering (IPO) to raise ₹200 crore in the current fiscal.
The IPO, by diluting the stake by 20%, forms part of the company’s plans to mobilise funds for the ₹6,000-crore capex it is proposing in the financial year.
Stating that the public issue was likely in the fourth (January-March) quarter, Managing Director Saurabh Kumar said 80% of the ₹6,000 crore would be raised through debt. The remaining 20% equity component will be by way of the paid-up capital of about ₹465 crore, raising ₹530 crore from the promoters, besides the IPO.
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The ₹4,800-crore debt, he added, would comprise domestic borrowings of ₹2,000 crore and almost an equal amount through bonds, including a $100 million masala bond. The company has tied up for ₹800-1,000 crore with multilateral agencies. The masala bond, for which the company has selected Barclay and Standard Chartered banks, would be made once the RBI accords permission.
The company, which had in September raised a ₹500-crore seven-year bond at a coupon rate of 8.07%, is planning to raise ₹1,000 crore next month. It is also expecting its current AA rating to be upgraded to AAA, he said.