According to reports, independent power producer Mytrah Energy is seeking to raise $400 million to $600 million (Rs 2,500 crore to Rs 3,750 crore) by hiving off its Indian operational assets into a business trust and listing it on the Singapore stock exchange.
The UK-based company hopes to have assets that generate about 600 megawatt of wind power at the time of listing in the next three-four months, said a person with direct knowledge of the development on condition of anonymity.
If successful, Mytrah Energy will become the third India-focused company to raise equity through the business trust route after Religare listed its physical assets and Ascendas its information technology infrastructure.
Mytrah, which is listed on the Alternate Investment Market of the London Stock Exchange, is looking at divesting up to 49% of the operational assets of its Indian subsidiary, said the source. It has roped in Morgan Stanley and Standard Chartered as merchant bankers for the proposed listing.
Only those business trusts which have operational assets with long-term visibility of cash flows and minimum risk are eligible to raise equity funds through listing on the Singapore Stock Exchange.
“We are trying to comply with the process required to raise funds through listing on the Singapore stock exchange and we will be in a position to disclose the details only once we are eligible,” Vikram Kailas, managing director of Mytrah Energy India told ET.
However, he refused to divulge details on the amounts being raised, the quantum of operational assets being transferred to the business trust, the valuations and the timing of the Singapore listing.
For the year-ended December 2012, the company reported revenue of $38.91 million (Rs 243 crore), Ebitda (earnings before interest, taxation, depreciation and amortisation) of $35.48 million (Rs 222 crore) and a post-tax profit of $12.03 million (Rs 75 crore) on operating wind power assets of 310 MW.
“We will be deploying a large part of the proceeds into the wind energy business but we are yet to decide on where else to invest a portion of the funds,” said Vikram Kailas.
However, the source quoted above said Mytrah will also look to pay down all or a substantial part of its debt, now at around $260 million (Rs 1,600 crore).