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Oil report

UPDATE 1-Indian Energy floats on AIM; raises 9.75 mln stg

* Says shares to trade on AIM

* Places about 12.2 mln new shares at 80 pence/shr

* Aims move to Main Market, dual listing in Mumbai

* Intends to own 300 MW/year portfolio by 2012-2013 (Recasts; adds MD comments, details)

By Ramkumar Dakshinamoorthy

BANGALORE, Sept 2 (Reuters) - India-focused wind farms operator Indian Energy Ltd IEL.L raised 9.75 million pounds ($15.75 million) through a placing and went public on Wednesday on the Alternative Investment Market (AIM).

The company, which placed about 12.2 million new shares at 80 pence apiece, said it aims to move to the Main Market and potentially seek some form of dual listing in Mumbai.

The independent power producer, which is based in Guernsey and has offices in Mumbai and London, said it would have about 25.3 million shares in issue on admission.

This year, the company’s initial public offering is the fourth on the AIM, which has been shrinking since its peak in 2007 as the pace of new listings has not kept up with the rate of cancellations, while the credit crunch has meant many mooted listings have failed to come to market.

The other three were Max Property Group Plc MAXP.L, Critical Information Group Plc CIG.L and NewRiver Retail Ltd NRRT.L.

The fundraising would allow Indian Energy to acquire a new project of about 16.5 megawatts (MW) based on current valuations being sought by vendors, the company said.

“Our strategy is to build the company from 25 MW, adding about another 16 MW within nine to 12 months and then take it to somewhere between 75 MW and 100 MW within the next 18 months,” Managing Director Rupert Strachwitz told Reuters.

Indian Energy, which owns and operates a 24.8 MW wind project at Gadag, near Hubli in the South Indian state of Karnataka, said it intends to build a portfolio of 300 MW of operating capacity by 2013.

The company said it is currently evaluating projects in various Indian states, specifically in Gujarat, Rajasthan, Karnataka and Tamil Nadu, totalling about 230 MW.

"We intend to raise equity funding in London and at the moment we are working with the State Bank of India SBI.BO and that would be our preferred lender for the projects going forward," Strachwitz said.

State Bank of India provided 900 million rupees ($18.34 million) of finance for the company’s first project, added Indian Energy, which does not develop wind farms itself but operates the wind turbines once they are connected to the grids.

“We don’t have any plans for solar power and we see plenty of opportunity in the wind market in India and we see wind as one of the key parts of the government of India’s strategy for renewals,” Strachwitz said. ($1=.6191 Pound) ($1=49.08 Indian Rupee) (Editing by Aradhana Aravindan)

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