Spice Energy plans $300m GDR

 by Bharat Ratna

• Spice Energy plans for a Global Depository Receipts (GDR) issue of $300-400 million by 2^nd week of August.

• GDR would be listed in Luxembourg Stock Exchange and number of sovereign funds in the Gulf have committed to invest in our firm

• Proceeds of this issue will be used for setting up its 1,000 megawatt (mw) thermal power plant in Tamil Nadu

• The company has entered into an agreement with an Indonesian miner, PT Tambang Batubara Bukit Asam (PTBA), for uplifting 5-6 million tonnes of coal for 20 years

Spice Energy plans a global depository receipts (GDR) issue of $300-400 million (Rs 1,290-1,720 crore) by the second week of August. The GDRs will be listed on the Luxembourg Stock Exchange.

The GDR issue money will be used for setting up its 1,000 megawatt (mw) thermal power plant in Tamil Nadu.

Spice energy already has got the blanket approval of the Securities and Exchange Board of India (SEBI) for raising $1 billion through issue of ADRs, GDRs or FCCBs.

Mr Ravi Chilukuri, CEO told that we have our plan to go for a GDR issue and number of sovereign funds in the Gulf have committed to invest in our firm. There are oil-rich companies who want to diversify into power. The sovereign funds are from Dubai, Abu Dhabi, Qatar and Kuwait.

The company is currently in the process of reverse-merging its power project into the recently acquired, BSE-listed shell company, Hitkari Fibres.

Spice Energy has signed a deal with Indonesian miner PT Tambang Batubara Bukit Asam Tbk PTBA.JK to buy 6 million tonnes of coal a year from 2011 for its proposed 1,000 MW thermal power plant in southern India.

Mr Ravi told that the quantity of coal import will depend on the quality of coal. If it is 6,300 kilo or below,then it will be 5 million tonne of coal.

Mr Ravi further said that we have an agreement with PTBA for 6 million tonnes a year for 20 years.

He said his group's joint venture with NMDC Ltd would soon finalise a deal with the Armenian government to buy 70 percent stakes in two iron ore mines.