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Usher Eco Power files DRHP for an IPO

13 Feb 2012 Evaluate

Usher Eco Power subsidiary of Usher Agro has filed draft red herring prospectus with market regulator Securities Exchange Board of India (SEBI) for an initial public offering (IPO). The parent company is planning to dilute its 25% stake thereby raising Rs 100 crore from the issue of power unit.

IDBI Capital Market Services and SMC Capitals are the book running lead managers and Bigshare Services is the registrar to the issue.

The power co-generation company intends to utilize the issue proceeds for setting up of 18 MW Rice Husk based Biomass Co-generation power plant.

The company’s first rice husk fired 16 MW biomass based cogeneration eco friendly power project located at Tehsil Chhata, Mathura, Uttar Pradesh on land admeasuring 4.16 hectares is nearing completion and awaits connection to the state grid. The 16 MW plant is expected to commence commercial power generation by March 2012 and for the supply the company has entered into a Power Purchase agreement (PPA) with Tata Power Trading Company (TPTCL). Usher Eco Power foresee its capacity at 34MW by FY2014 after addition of 18 MW.

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