Warburg Pincus-backed ACB India plans to raise $200m through IPO, OFS
ACB India, a coal preparation plant operator backed by Warburg Pincus, is planning to raise as much as INR11 billion ($200 million) through an IPO and offer for sale (OFS) later this month.
According to Live Mint, Warburg Pincus is expected to sell an 8.8% stake in the company through an OFS. The firm currently has a 22% stake which means it will be left with a 13.2% share should the sale go ahead.
ACB proposes to use the investment to develop its pit-head power plants, a type of thermal plant built at the coalmine itself thus saving coal transportation costs. The company plans to commission two power projects with total capacity of 900 megawatts by 2014. The total investment required is INR40 billion. ACB has another 3,000 MW of power projects in various stages of development.
Warburg Pincus invested INR2 billion in ACB in 2006 for a 15.38% stake in the company. In 2008 it increased its stake to 22%. The private equity firm has also invested in India's Diligent Power, a company which develops coal-based thermal energy projects.
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