GVK Power may hive off energy arm

GVK Power and Infrastructure is planning to hive off its energy vertical into a separate company, ahead of a possible initial public offering (IPO) for the proposed company. The ground-work for the hive-off has begun, with the company bidding for oil blocks in the seventh round of the new exploration licensing policy (NELP). But plans for the IPO of the proposed company are yet to be finalised.

The asset base of the energy vertical is expected to touch Rs 12,000 crore after the completion of projects in the pipeline. GVK Power and Infrastructure is executing six power projects and two coal mine projects. It now wants to have a slice of the pie in oil and gas exploration as well and has hence bid for a couple of oil blocks under NELP-VII.

Read More in The Economic Times article.

IDFC to raise $500 mn via QIP route

The Infrastructure Development Finance Company (IDFC), the nation’s biggest infrastructure lender, has roped in Citigroup, UBS, Kotak Mahindra and JM Financial, to raise $500 million through share issuances to foreign and domestic institutions early next month.

This will be the biggest ever fund mobilisation through the Qualified Institutional Placement (QIP) route, after GVK Power & Infrastructure’s $300 million, handled by Kotak Mahindra, Citigroup and SSKI, and the $240 million issue by Max India, which was lead managed by CLSA.

IDFC’s roadshows for the QIP issue will start in the first week of July, said sources close to the development. The funds will be used to meet the growing demand from companies and the government to build ports, roads, power projects and other utilities.In the last eight months, 18 firms have raised more than Rs 4,500 crore ($1.09 billion) through the QIP route.

Read more in The Business Standard article.