KSK Energy Ventures IPO subscribed fully

The IPO of KSK Energy Ventures, has received total bids for 3,26,79,275 shares as against issue size of 3,46,11,000 shares and has subscribed 0.94 times, as per NSE website. Qualified institutional investors' reserved portion got subscribed fully in the first thirty minutes after opening. 
 
The issue had opened today and will close on June 25, 2008. The price band has been fixed at Rs 240 to Rs 255 per equity share of Rs 10 each. The issue will constitute 10% of the post-issue equity share capital of the Company.

The equity shares are proposed to be listed on the BSE and the NSE. Fitch Ratings India Pvt Ltd has assigned a grade of 3 (ind) out of a maximum of 5 (ind) for the Issue. Kotak Mahindra Capital Company Ltd, IDFC-SSKI Pvt Ltd, Morgan Stanley India Company. Pvt Ltd, Lehman Brothers Securities Pvt Ltd and Edelweiss Capital Ltd are the BRLMs for the Issue and Axis Bank Ltd is the Co-BRLM for the Issue.

The promoter company KSK Energy currently holds 61.39% and LB India Holdings Mauritius I Ltd currently holds 31.57% of the pre-issue equity share capital of the Company.

KSK Energy Ventures has operational power plants capable of generating 144 MW of power, and power projects under construction that are capable of generating an aggregate of 675 MW of power. It has entered into multiple Power Purchase Agreements with captive consumers. The Company has three power projects under development and five planned projects for an aggregate capacity of 8,318 MW of power.

The Company proposes to utilize the net proceeds of the Issue to part fund its investment in Wardha Power Co. Pvt Ltd, either directly, or through KSK Electricity Financing India Pvt Ltd, to finance the equity component of the 1,800 MW coal-based thermal power plant at Chhattisgarh. KSK Energy Ventures Limited has received an aggregate of  Rs. 415.34 crore pursuant to subscription in the Pre-IPO placing of Equity Shares at Rs.240/- per share , of which the company intends to use Rs. 215.34 crore for funding the Wardha Chattisgarh Project. The equity shares in the Pre- IPO placing have been subscribed by the following Investors:

• Macquarie Bank Limited
• Tree Line Asia Master Fund (Singapore) Pte Ltd
• GE Capital International (Mauritius)
• Universities Superannuation Scheme Limited,
• Infrastructure Development Finance Company Limited, and
• Axis Bank, Limited.