International BusinessPetronet LNG likely to launch FPO or rights issue in 2011-12
The country"s largest liquefied natural gas importer, Petronet LNG Ltd, may come out with a $100 million follow-up public offer or a rights issue in 2011-12 to part fund a 1,200-Mw power plant, to be set up at Dahej in Gujarat.
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Petronet LNG CEO and MD P Dasgupta said that the company may look at raising $100 million (about Rs 480 crore) through FPO or rights issue.
The 1,200-Mw power plant will cost Rs 3,500 crore, 30 per cent of which will be through equity contribution and internal accruals. The remaining 70 per cent would be debt, he said.
Dasgupta said the power plant which will use the imported liquefied natural gas (LNG) as fuel, will be built in 33 months from the date of award of contract that may happen in the second quarter of 2010.
The 70 per cent of the power generated at the plant will be sold to states like Kerala, Andhra Pradesh, Karnataka and Tamil Nadu.
Follow-up public offer (FPO) is a stake sale process for a listed company, while a rights issue is a way of raising money by issuing shares to a company"s promoters or existing shareholders.