Lanco Infratech is in talks with investors to sell a minority stake in its power business to raise USD 600-750 million to fund expansion, a senior executive said on Tuesday.
Lanco will consolidate its power business under one vertical and raise funds by the first quarter of 2012-13, Philip Chacko, director, investor relations, told Reuters.
Lanco has ready-to-generate capacity of 4400 MW and is constructing 4900 MW of power plants. It also has a pipeline of another 4000 MW where construction is yet to start. Below is an edited transcript of Chacko's interview on CNBC-TV18. Also watch the attached video. Q: Your construction business seems to have performed really well. Can you first take us through your performance in that business and the reasons for this better than expected performance?
A: Yes. About 95% of our revenue comes from both the construction business and from the power vertical. The construction business today has an order book of Rs 26,500 crore and over the last 10 years we have really established our credentials as a very strong power developer in the country.
We have got over a decade of experience in the power vertical. In our EPC business we have got 4800 man organisation today and a very strong EPC capability. Looking at our order, which we have booked for the current year, there has been an increase in the topline
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