Sterlite Energy plans Rs8000 crore IPO: report

Mumbai: Vedanta Resources will raise up to Rs8000 crore ($2 billion) through an initial public offer of Sterlite Energy, its energy arm in India, to fund its power projects, reports quoting company sources said.

Sterlite Energy is a subsidiary of non-ferrous metals producer Sterlite Industries (India) Ltd, which is 56.99 per cent owned by British mining and metals group Vedanta.

The report quoted people close to the developments as saying that the public offering will probably be in India.

Earlier this week, Sterlite Industries , India''s largest metals and mining company, said it planned to participate in coal-based power generation projects and other ancillary activities through its subsidiary. It was looking at financing options through equity and debt.

In a filing with the Bombay Stock Exchange Sterlite Energy said it is planning to build power projects with total capacity of 10,000 megawatts in the country.

The UK-listed group, meanwhile, is facing increasing controversy over its human rights and environmental record in India, with Norway this week dropping the mining and metals group from its $350 billion sovereign wealth fund for ethical reasons.

The move marks a major diversification for at a time when India is aggressively soliciting funding for the sector. The government estimates India needs to invest $490 billion in the next five years in infrastructure, a large proportion of which will be dedicated to the power sector.