BEL plans 10.8 per cent stake dilution to raise Rs230 crore
12 Jul 2010
LNJ Bhilwara Group firm Bhilwara Energy (BEL) today announced that it would dilute nearly 11 per cent stake to two foreign investors to raise Rs230 crore for partially funding the company's power projects.
The company said in a statement that BEL would divest 10.8 per cent of fresh equity shares to Washington-based IFC and India Clean Energy Fund for $50 million ($25 million each).
The divestment would see the promoter holding in BEL reduce to around 83 per cent. One of the promoters RSWM formerly known as Rajasthan Spinning and Weaving Mills Ltd will see its holding in BEL fall from 19.5 per cent to 17.4 per cent, while HEG Ltd's shareholding will drop to 25.5 per cent from 28.9 per cent.
"After the stake dilution, the total foreign interest stands at around 17 per cent," the statement said.
New York Life Investment Management India Fund, WIH Holdings and Jacob Ballas Capital had in 2007 invested in BEL which is a principal-holding company for all power ventures of the Bhilwara group. The company currently has an 86 MW operating project, while a 192 MW hydro power plant is expected to come on stream this month.
According to the statement the stake sale would help fund power projects in India and Nepal. The company is setting up power projects with a capacity of 1,100 MW, which would require funding of Rs 8,000 crore in the next four years.
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