Great Eastern Energy Corporation files IPO papers with SEBI

Moneycontrol Bureau

Great Eastern Energy Corporation (GEEC) has filed draft red herring prospectus (DRHP) with the SEBI for its public issue of up to 82 lakh equity shares of face value of Rs 10 each. Earlier in December 2008 also, the natural gas producer had filed IPO papers.

The current issue comprises a fresh issue to the public of 78 lakh shares (fresh issue) and an offer for sale of upto 4 lakh shares (offer for sale) by YKM Holdings International.

Deutsche Bank Trust Company Americas has 61.99 percent stake in the company followed by YKM Holdings Private Limited and YKM Holdings International Limited with 26.34 percent and 10.53 percent stake, respectively.

The company produces natural gas from coal seams, commonly known as coal bed methane (CBM), in India. Its focus is on the exploration, development, production, distribution and sale of CBM.

It has a 100 percent participating interest in a license area, the Raniganj (South) block in West Bengal, for that it holds exploration, development and production (EDP) rights until 2036.

Additionally, it also holds EDP rights in the Mannargudi block in Tamil Nadu until 2046. It has a 25 percent participating interest in the Raniganj (North) block along with ONGC.

GEEC intends to deploy funds raised from the fresh issue for drilling & completion of CBM wells in the Raniganj (South) block and general corporate purposes.

It had reported a profit after tax of Rs 35.85 crore on revenues of Rs 158.4 crore for the year ended March 31, 2013 as against loss of Rs 5.6 crore on revenues of Rs 108.6 crore in previous year.

The company has appointed ICICI Securities Limited as a book running lead manager for the issue.

(Posted by Sunil Shankar Matkar)