PLG Power, the energy and power division of the PLG Group, plans to raise about Rs 3,000 crore by listing in the London and Indian markets this year.
The company currently has a focus on solar power. It will complete the process of listing on the Alternative Investment Market (AIM), the London Stock Exchange’s platform for smaller growing companies, by June or July, managing director and CEO Puneet Goyal told Business Standard. About Rs 2,200 crore will be raised from AIM, while the rest of the amount will come from the Indian market,he said. For listing on the Indian stock exchange, the company expects to complete the process by August.
The proceeds will be used in the manufacturing of solar cells, modules and wafers. The company already has a unit for solar photo-voltaics in Nashik, which will have a capacity of 100 Mw by June 2012.
It is also setting up a unit for manufacturing solar cells, with a capacity of 120 Mw. A unit for a 100 Mw waferline will also be set up.
It is also working on a 40-Mw solar power project in Gujarat, to start by this October. PLG has signed a power purchase agreement with Gujarat Urja Vikas Nigam Ltd for this plant. There is equity participation of Zamil of Saudi Arabia and with Ashburg of the UK.
The generation of 40 Mw will be in four phases of 10 Mw each. The first phase of 10 Mw is likely to come up soon and the whole project will be completed by the end of the next financial year.
He said PLG Power will invest a total of Rs 2,500 crore for all its ventures. Of this, Rs 600 crore has already been invested, while it has tied-up funds for the rest of the amount. Apart from the solar sector, the company is also focusing on EPC (engineering, procurement and construction) contracts. It has already won a 30 Mw EPC project for about Rs 400 crore.
“We are also talking to other solar developers for EPC projects and we expect to get another EPC contract worth Rs 1,000 crore soon,” Goyal added.
Solar in India is a theme that has caught the fancy of a number of European investors that Panchabuta has spoken to in recent times. It seems like it is based on this euphoria among investors in solar that PLG is trying to cash in on. As we have mentioned in May last year, PLG Power was one of the first that was allotted a 40MW project. The project has been delayed and recently the company had announced that the 40MW would be commissioned by the end of this financial year.
They have since made an announcement that they would be implementing 70MW solar power with 30MW as EPC and 40MW for their own allotment and had announced a target 200MW Solar EPC by 2012. Global leaders like juwi are now signing up projects rapidly as they are bankable and have become cost competitive. Indian infrastructure behemoths like L&T have successfully entered into this space making solar epc a highly competitive space.
With manufacturing being a very price and cost senstive game and one of scale, EPC being a highly competitive and technical space and with no projects on the ground still, PLG seems to have embarked on a very ambitious fund-raising plan. We will follow this announcement to see how the fund-raising actually goes and will keep our readers updated.