Diversified infrastructure company Lanco Infratech is hiving off its power business into a separate company with the aim of hitting the capital market with an initial public offer in 2012 for financing growth plans. The company, which has moved its headquarters from Hyderabad to Gurgaon to be closer to the decision makers, has an operational power generation capacity of 2,100 megawatts (mw) under eight special purpose vehicles or SPVs. It plans to raise its capacity to 4,000 mw by 2011 and subsequently to 15,000 mw by 2015. The power business currently accounts for around 55% of the company's revenue.
Lanco Infratech operates in the infrastructure space both as a developer as well as a contractor of primarily power and road projects. The company has a gross consolidated debt of around Rs. 16,000 crore, being serviced at an average interest rate of 10.0-10.5%.
It would be raising debt of another Rs 7,300 crore by January for the financial closure of a 1,320 mw unit at the coal-fired Amarkantak power project in Chhattisgarh and a 742 mw unit at the gas-fired Kondapalli power project in Andhra Pradesh. Besides the investment on power projects, the company is also looking at significant investment on fuel linkages given that its capacity expansion target would see coal requirement rising to up to 60 million ton per year by 2015 from 5-6 million ton now.crackcrack
Company Name | CMP |
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Larsen & Toubro | 3602.30 |
Rail Vikas Nigam | 289.85 |
KEC International | 728.30 |
Kalpataru Projects | 1179.00 |
NCC | 249.40 |
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