KVK Energy joins Indian rush to list on London's Aim
Pan Kwan Yuk | Monday, 2 June 2008
FT Syndication Service
LONDON: Interest among Indian companies to list on London's Alternative Investment Market (Aim) has continued apace in spite of market turbulence, with KVK Energy the latest arrival from the subcontinent.
The company, which is developing coal-fired and hydroelectric power plants for industrial consumers, has announced its intention to list on the junior market and raise $75m to fund expansion.
The move, which has come on the heel of two other Indian initial public offerings last month, highlights the growing importance of foreign companies as a source of listing revenues for Aim.
The bourse has seen a sharp drop in new listings this year as a result of the turmoil. Between January 1 and the end of April, there were 41 IPOs, compared with 76 companies in the corresponding period last year. Indian companies have featured strongly among the new entrants.
Pramod Raju, a non-executive director, said the funds raised would be used to build three new power plants, through which the company hopes to cash in on India's seemingly insatiable demand for energy.
KVK owns and operates five power plants in southern India and has secured funding to build another five. Combined with the three additional plants it hopes to build with the money raised from Aim, the company said it would be able to generate nearly 4000MW of power - or enough to power a state for a year. The company had turn-over of $15.6m last year, which generated earnings before interest, tax, depreciation and amortisation of $5.6m.
The issue is expected to give the company a market capitalisation of about $325m to $365m. KBC Peel Hunt will act as nominated adviser and joint broker.
LONDON: Interest among Indian companies to list on London's Alternative Investment Market (Aim) has continued apace in spite of market turbulence, with KVK Energy the latest arrival from the subcontinent.
The company, which is developing coal-fired and hydroelectric power plants for industrial consumers, has announced its intention to list on the junior market and raise $75m to fund expansion.
The move, which has come on the heel of two other Indian initial public offerings last month, highlights the growing importance of foreign companies as a source of listing revenues for Aim.
The bourse has seen a sharp drop in new listings this year as a result of the turmoil. Between January 1 and the end of April, there were 41 IPOs, compared with 76 companies in the corresponding period last year. Indian companies have featured strongly among the new entrants.
Pramod Raju, a non-executive director, said the funds raised would be used to build three new power plants, through which the company hopes to cash in on India's seemingly insatiable demand for energy.
KVK owns and operates five power plants in southern India and has secured funding to build another five. Combined with the three additional plants it hopes to build with the money raised from Aim, the company said it would be able to generate nearly 4000MW of power - or enough to power a state for a year. The company had turn-over of $15.6m last year, which generated earnings before interest, tax, depreciation and amortisation of $5.6m.
The issue is expected to give the company a market capitalisation of about $325m to $365m. KBC Peel Hunt will act as nominated adviser and joint broker.