Indiabulls Power (IPL) has received an approval for the proposed scheme of arrangement between the company, Indiabulls Infrastructure Development (IIDL), a subsidiary of Indiabulls Real Estate (IBREL) and their respective shareholders and creditors, for the amalgamation of IIDL with the company under the provisions of Sections 391-394 of the companies act, 1956. The company has received an approval at its board meeting held on August 05, 2011.
Under the scheme, IPL will issue and allot its 41.54 crore equity shares to IIDL shareholders. Issuance of these shares represents a value of Rs 679 crore attributed to IIDL at current market price of IPL share and a value of Rs 872 crore attributed to IIDL at six month average price of IPL share. Further, the scheme shall be subject to necessary approvals of shareholders and creditors and sanction of High Court of Delhi.
IIDL has a networth of Rs 1045 crore and, the merger of IIDL with IPL, under the scheme, would enhance IPL's net worth by approx Rs 1,045 crore and post merger, the networth of IPL would become approx Rs 5,300 crore. The total equity requirement for Phase I & Phase II at Amravati and Phase I & Phase II at Nasik is Rs 6709 crore. This increase in networth of IPL by Rs 1045 crore, would be a major step in fulfilling equity requirement for execution of Phase II at Nasik & Phase II at Amravati aggregating to a combined capacity of 2700 MW, 1350MW capacity at each of the locations.
Besides, the balance gap in equity resources would be met by the company through a firm tie-up of sub-debt cum SBLC facility with a bank, from whom the company has already received the term sheet, and free cash flows accruing from Phase I of Amravati & Phase I of Nasik power plants, which would become operational next year. With all these steps the company would achieve both equity and debt financing in totality for Phase I & Phase II at Amravati and Phase I & Phase II at Nasik. The debt financing of Phase I & Phase II of Amravati and of Phase I & Phase II at Nasik has been already achieved through firm and signed agreements.
Indiabulls Power focuses on developing, constructing, and operating power projects in India and internationally. It participates in various coal based thermal, hydro, and renewable energy projects, as well as in coal mining opportunities.
| Company Name | CMP |
|---|---|
| NTPC | 324.80 |
| Tata Power | 371.10 |
| Power Grid Corp | 300.00 |
| Adani Power | 565.65 |
| Torrent Power | 1466.85 |
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