Adhunik Metaliks said State Bank of India and Macquarie SBI Infrastructure Investments together will invest Rs 125 crore as equity in a power project executed by the company's arm Adhunik Power and Natural Resources.
This investment is “towards part finacing the equity of its ongoing 540 MW coal-based independent power project at Jamshedpur in Jharkhand”, Adhunik Metaliks said in a statement.
Adhunik Power and Natural Resources is constructing the plant at a cost of Rs 2,650 crore and plant is likely to be commissioned in January 2012. The entire power generated here will be sold on merchant basis.
In December 2009, IDFC Project Equity Fund had made an equity investment of Rs 250 crore in the Jamshedpur based power plant.
“The investment by Macquarie SBI and SBI will meet the balance of the project's total equity requirement of Rs 663 crore,” the statement added.
Commenting on the deal, the Managing Director of the company, Manoj Kumar Agarwal, said, “The company is marching towards being one of the major Independent Power Producers and investments by reputed investors like Macquaire, SBI and IDFC are testimony of their confidence in our vision and capabilities.”
Adhunik Metaliks is a leading producer of specialty alloy steel and has diversified into the mining and power space. It has manufacturing facilities in the states of West Bengl, Orissa, Jharkhand and Meghalaya.
Shares of the company were trading at Rs 113.40 per piece, up 1.8 per cent from the previous close.
Source: Economic Times