Financial Daily from THE HINDU group of publications
Wednesday, Oct 19, 2005


Group Sites

Markets - Stocks
Corporate - Mergers & Acquisitions

NEPC India shareholders to get 12.5 shares in new company for every 100

M. Ramesh

Chennai , Oct. 18

SHAREHOLDERS of NEPC India will get 12.5 shares in the newly formed special purpose vehicle, Southern Windfarms Pvt Ltd, for every 100 shares held in NEPC India, the Managing Director of the company, Mr Tirupathi Khemka, told Business Line on Tuesday.

NEPC India on Monday announced the sale of the wind energy division to Southern Windfarms Pvt Ltd, a company formed by a group of investors, which include the Khemka family.

Southern Windfarms (whose name could change) will be listed on the stock exchanges. The restructure move will also result in NEPC India becoming a totally debt-free company.

For a consideration of Rs 153.59 crore, NEPC India will transfer the entire aviation business — tower manufacturing and assembly facilities in Pondicherry, a company-owned windfarm, maintenance contracts for more than 1,000 windmills and the NEPC brand — to Southern Windfarms. Of the consideration, Rs 135 crore will be paid directly to NEPC India's secured and unsecured creditors. For the balance, NEPC India's shareholders will get shares in the special purpose company.

After the sale, NEPC India will have only one division - aviation.

The company has two aviation licences, one its own and another which it obtained when it acquired Damania Airways. The licences can be renewed upon payment of dues to airport authorities and the oil companies, although NEPC believes it has to, not pay, but receive money from them. The matter is in court, but in any case the licences are renewable.

Mr Khemka said the NEPC group was talking to two international companies and one national aviation firm for partnering in aviation business. The partner will essentially run the business.

Similarly, the wind energy business of the group will be run by Southern Windfarms. Shareholders of NEPC India will continue to hold shares in the company and also get additional shares in Southern Windfarms (12.5 for every 100).

The group is also close to announcing a tie-up with an international company for technology for high-end wind turbines, which can generate electricity from even low to very low wind speed areas, Mr Khemka said.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Tata Safari Dicor

Stories in this Section
Kotak Mahindra plans to acquire 20% in Everest; Enam cancels plans

Union Bank begins capital market ops
Floater from DSP Merrill Lynch
NEPC India shareholders to get 12.5 shares in new company for every 100
IVRCL Infrastructures tumbles on funds' selling
Fidelity buys 5.56% in IL&FS Investsmart
Bears prevail
Weak rupee drags down stock market — Sensex slips 80 in volatile trading
Tata Steel falls on profit concern
Weak rupee puts bears on front foot
Prithvi Info price band at Rs 250-270
Shree Renuka Sugars IPO priced at Rs 285 per share
SEBI to ease norms for IPOs: Damodaran

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line