>ADANI POWER IPO FACT SHEET (SHAREKHAN)

Object of the issue
The total issue of 30.16 crore equity shares is aimed at raising Rs2,715 crore to Rs3,016 crore (depending on the price band of Rs90-100 per share). Of the total issue the company is expected to deploy Rs2,193 crore for funding its projects while the balance would be utilised for general
corporate purposes.

Shareholding pattern
After the issue the total number of shares of the company will increase from 187.9 crore to 218 crore, bringing down the promoter group’s stake to 73.5% of the diluted equity

Company background
Adani Power Ltd (APL) is a power project development company that is developing and will operate and maintain power projects in India. The company currently has four thermal power projects under various stages of development, with a combined installed capacity of 6,600 megawatt (MW). In addition, the company is also planning to develop two power projects with a combined installed capacity of 3,300MW.

Adani Enterprise Ltd (AEL), the promoter of APL, is part of the Adani group. AEL is one of the largest traders of coal with coal mining rights both in the international and domestic markets. AEL is one of the largest power traders—in volume terms—in India. Another Adani group company, Mundra Port and Special Economic Zone Ltd (MPSEZL), owns and operates one of the largest private sector commercial ports in India, a special economic zone (SEZ) at Mundra, and a railway line between Mundra and Adipur. This would help APL to derive strong synergies, what with its projects being located in close vicinity.

Key risks

■ Sourcing equipment from Chinese manufacturers
APL has indicated its intention to procure the equipment for its planned capacity from the Chinese equipment suppliers. There has been significant reports about the quality and poor performance of the Chinese equipment in the country. If the equipment do not operate as required the financials of the company could be significantly affected.

■ Timely execution of projects
In case the company is not able to execute and commission its projects in time, it could hamper the cash flows and earnings going forward.

To see full report: ADANI POWER IPO