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Home » Biomass » A2Z Maintenance & Engineering Services Limited to raise about Rs. 8.62 billion in public issue; Invest in 120MW of biomass power projects in Punjab and Rajasthan

A2Z Maintenance & Engineering Services Limited to raise about Rs. 8.62 billion in public issue; Invest in 120MW of biomass power projects in Punjab and Rajasthan

A2Z Group was founded in the year 2002 and achieved a turnover of INR 750 Crore during 2008-2009 and INR 1200 Crore for 2009-2010.
The Group covers three business verticals of which the Engineering, Procurement & Construction (EPC) Company is the largest entity. Its business operations encompass Electrical Distribution Systems, EHV Switch yards, Transmission lines, Railways Electrification, Discom IT Applications & BOP for Power Plants.

The other company A2Z Infra Services entails all Facility management for Buildings, Malls, Offices and Residential Complexes inclusive of Security Services.

The Third vertical has the A2Z Infrastructure which pilots Renewable energy, the Municipal Solid Waste projects and also the waste water remediation infrastructure in the country.

As Panchabuta has discussed earlier, the company has a biomass capacity of about 60MW.  In Punjab, the company was setting up three co-generation power plants in collaboration with sugar mills on a Build-Own-Operate-Transfer (BOOT) model for a period of 15 years. A2Z will provide steam and power for operating the manufacturing process of the sugar mills during the crushing season. A2Z, which also bagged one of the largest municipal solid-waste management contract from Kanpur municipal corporation, planned to set up 10-15 Mw capacity power plants in various cities, depending on the availability of processed solid waste.

Panchabuta, had earlier reported that the company had plans to raise around Rs 350 crore through a public issue of shares to fund its expansion plans including  several projects across renewable energy and waste management.

According to reports today, A2Z will look to raise Rs 675 crore through a fresh issue and another Rs 187 crore for selling shareholders, which would take the total issue size to Rs 862 crore. The firm plans to use the money raised through the issue for investment in three biomass (bagasse)-based power cogeneration projects of 15 MW each in Punjab besides investment in five biomass-based power generation projects of 15 MW each in the Rajasthan, repayment of a loan granted by L&T Infrastructure Finance besides working capital requirements.

A number of players in the branded rice segment with rice mills have recently announced plans to setup/augment “rice husk” based biomass plants in Punjab (here and here). It seems like the company has decided to focus more on the biomass sector instead of the waste management and waste to energy projects that they wanted to focus on earlier.

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