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Home » Biomass » Suryachakra Power plans to float a company on AIM; raise about USD120mn-150mn

Suryachakra Power plans to float a company on AIM; raise about USD120mn-150mn

Suryachakra Power Corporation Limited  is the flagship company of Suryachakra Group with interests in Power generation – renewable energy (biomass, Solar, hydro, Wind) and Clean Technology / Ultra Super Critical Thermal Power Plants (coal, Gas), Engineering Consultancy and Urban infrastructure development activities.

Suryachakra Power Corporation Limited has established 3 wholly owned subsidiaries for setting up of renewable energy (biomass) power projects and also acquired stake in Sri Panchajanya Power Private limited, which was setting up a 10 MW Biomass Power Plant at Hingoli, Maharashtra.

According to this report, Suryachakra Power is in the process of floating a new “plc company” to list it on London’s Alternative Investment Market to raise between USD 120mn and USD 150mn.

India’s Suryachakra Power plans to float new company on AIM

India’s Suryachakra Power is in the process of floating a new “plc company” to list it on London’s Alternative Investment Market to raise between USD 120m and USD 150m, said Dr Surya Manikyam Manepalli, the managing director of the company.

..Climate Change Investment fund, managed by First Climate, would be the anchor investor in the new company and would hold a stake of about 26%.

..Suryachakra Power, a renewable energy project developer, has 20MW of operating renewable energy capacity in the biomass sector, he said. Another 30MW of renewable energy capacity will be commissioned in the next two months. “We will restructure in such a way that all our renewable assets are under the new company,” he said.

..The company wants to expand its renewable portfolio to 220MW across all renewable energy segments, including solar, wind, biomass and small hydro.

“AIM is quite receptive to a renewable energy portfolio. Valuations are good,” said another senior official of the company who did not want to be named.

Suryachakra has a 50:50 venture with Germany’s Man Solar Millenium for joint development of solar projects in India.

With an installed capacity of  20MW of biomass and a planned commissioning of 30MW  in the next few months, the fund raising plans of  560 Cr-700Cr  seems rather ambitious, but with such a huge capacity expansion of about 220MW planned it could probably justify such an ambitious plan.

Just recently, reports in the media talked about Orient Green Power that is  backed by PE firms Bessemer and Olympus Capital, planning to be the first green energy IPO in India. The company  has about 175 MW in operations in India and was expecting a valuation of about 2500 Crore. It has another projects worth 500 MW at various stages of development, with around 300 MW coming in wind energy and 200 MW in biomass.

Given this, Suryachakra Power seems to prefer raising the funds in AIM where historically the “in demand theme” in India (eg. real estate circa 2006)  have always commanded very high premiums when listing and are able to raise capital for future projects.

The biggest challenge in this, with regards to India has always been the gap between planned projects and actual execution due to delay in approvals, land acquisition and the failure on the project developers part to factor in state and local constraints that such projects often encounter.

Panchabuta, will closely cover Suryachakra’s growth and wishes its best on their fund raising plans.

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