Indian generator maker Powerica Ltd., which is backed by the private equity arm of Standard Chartered, has filed a prospectus to raise $200 million in an initial public offering, Reuters reported. The Mumbai-based company is expected to launch the IPO in June, Reuters reported. Standard Chartered private equity owns 12% of the company, having invested $50 million in Powerica in 2007. The firm will sell a significant portion of its holding in the company, Reuters wrote.
(Reuters) – Indian generator maker Powerica Ltd, in which the private equity arm of Standard Chartered (STAN.L) holds 12 percent, on Thursday filed a prospectus for a $200 million initial public offering, two sources with direct knowledge of the development told Reuters.
The Mumbai-based firm is expected to launch the IPO in June, depending on market conditions, the sources, who declined to be named as they were not authorised to speak to the media, said.
JM Financial Services (JMSH.BO), Citigroup (C.N), Kotak Mahindra Bank (KTKM.BO) and IDFC-SSKI are the arrangers to the issue, the sources said.
Standard Chartered private equity, which has invested $50 million in Powerica in 2007, will sell a significant portion of its holding in the company, they added.
Indian companies have raised $24.9 billion from equity issues in 2010, posting a growth of 22 percent from the previous year and marking its best annual performance since 2007.
But, the 30-share Sensex .BSESN, India’s benchmark index, is down nearly 10 percent in 2011, with foreign institutional investors pulling around $2 billion out of Indian equities this year after pouring in a record $29 billion in 2010.
Bankers say total equity issuance in India in 2011 is unlikely to top last year’s nearly $25 billion, the biggest haul since 2007. (Reporting by Indulal P.M.; editing by Malini Menon)