Lanco Infratech Ltd is close to selling stake in its holding company and in the special purpose vehicles, while some of its strategic investors – Genting and Doosan – may exit.
The diversified infrastructure company, which has made clear its intent to raise up to $1 billion by selling stake, in several tranches, has mandated Ernst and Young to handle deals relating to small hydel power projects and special purpose vehicles, and Macquarie and SBI Caps to handle deals at the holding company level.
T. Adibabu, Chief Operating Officer, Finance, Lanco Infratech, told
“In the case of others, we are seeking to close deals. This will help add equity and reduce debt as the latter gets passed on to the firm that picks up equity. There is also a general expectation that the market will get better early next year as the NTPC issue hits the market. This will provide a better business environment,” explained Adibabu. “Just as we did for the Kondapalli project, we are looking at partners for Amarkantak, Anpara, Udupi and other projects, including roads now completed or at various stages of execution. In the case of Udupi, we are awaiting the Central Electricity Regulatory Commission nod on tariffs; this will lead to a better valuation,” he said.
“We had made clear our intent to divest stake over a year ago,” he said.