CRISIL assigns grade 4/5 to Orient Green Power IPO

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CRISIL Equities has assigned a grade 4/5 to the proposed initial public offer (IPO) of Orient Green Power Limited (OGPL), in its research report dated July 29, 2010. According to report, "this grade indicates that the fundamentals of the IPO are above average relative to other listed equity securities in India.

The report says, "The assigned grade reflects OGPL's ability to leverage the opportunity present in the power market because of power deficit, which is expected to remain about 4.0% over the medium term. Most of OGPL's committed projects are in an advanced stage of implementation. The grade factors in the Indian policymakers' commitment to promote the renewable energy industry through fiscal and other incentives like RPO (Renewable Purchase Obligation) and RECs (Renewable Energy Certificates). The grade is also supported by the fact that the management has shown its ability to acquire plants and improve their operational efficiency as well as set up new capacities in a timely manner."

OGPL is a leading Indian independent renewable energy-based power generation company focused on developing, owning and operating a diversified portfolio of renewable energy power plants. As of March 31, 2010, its total portfolio of operating projects included 193.1 MW of aggregate installed capacity, which comprised 152.6 MW of wind energy projects and 40.5 MW of biomass projects. The company plans to raise Rs 900 crore through the issue, as per DRHP.

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To read the full report click on the attachment