openPR Logo
Press release

Great Eastern Energy plans 'sponsored' issue

A first for Indian markets, AIM-listed firm looks for liquidity.

Delhi-based Great Eastern Energy Corporation (GEEC) is planning a public issue, part of which will be “sponsored”, meaning foreign shareholders will also tender their shares for sale, a first for the Indian markets.

GEEC, a coal bed methane exploration and development company promoted by Yogendra Kumar Modi, is listed on the London Stock Exchange’s Alternative Investment Market (AIM).

The issue, which is awaiting approval from the Securities and Exchange Board of India (Sebi), is unique in that such sponsored issues by Indian companies (like Infosys) have so far been restricted to overseas share sales by Indian companies.

Investment banking sources said GEEC plans to mop up around Rs 1,000 crore, half of which will accrue to the company and the rest to shareholders.

Notices sent to the holders of GEEC’s Global Depository Receipts (GDRs) said the company is planning a public offer of 92.6 million shares, comprising a fresh issue of 46.6 million shares and roughly an equal number offered by shareholders.

Depending on the response, the company has an enabling provision for a “greenshoe option”, meaning the company can keep oversubscriptions to the extent of 15 per cent of the issue size.

The company has appointed ABN Amro, Enam Securities and DSP Merrill Lynch as lead managers for the IPO.

The company has a paid up capital of Rs 54.46 crore, comprising Re 1 each, which will increase to a little over Rs 59 crore.

GEEC was listed on AIM in 2005 and some of the major shareholders include UK-based finance conglomerates AEGON and Fidelity. The promoters hold around 66 per cent, of which nearly 32 per cent is in the form of GDRs.

The notice to GDR-holders explains that the listing on the Indian markets is driven by the need for liquidity given that low trading levels on AIM make it difficult for investors to enter or exit the company.

The Indian listing is also necessary because under Sebi norms, a company registered in India but listed overseas cannot opt for a follow-on issue overseas or a private placement without listing on the Indian bourses first.

The only two other companies that fall in this category are Rediff.com and Satyam Infoway, both of which are registered in India but listed on Nasdaq.

Meanwhile, bankers are in talks with Sebi over the sponsored portion of the issue. “There are some issues in term of disclosing the name of the public shareholder at the time of filing the draft red herring prospectus,” sources said.

GEEC has a licence for an over 210 sq km coal bed methane block in the Raniganj coal field in West Bengal where it has started production.

About GEECL:
Great Eastern Energy Corporation Ltd. (GEECL), a part of the YKM Holdings Group, is the first Private Sector Company in India to explore, develop, distribute and market Coal Bed Methane. In December 2005, GEECL became the first Indian Company to be listed on the London Stock Exchange's Alternative Investment Market (AIM). The notional market capitalisation of the Company as of July 13, 2007 was GBP 172 million / US$ 350 million.

The organization, headed by Mr. Y.K. Modi, is exploring & developing production wells for Coal Bed Methane in Raniganj coalfields, West Bengal. GEECL has completed 23 vertical production wells. All the wells are drilled, logged, cased, cemented and fractured. Apart from this 8 Core hole have drilled for desorption and other studies. Learn more about GEECL on http://www.geecl.com.

Prashant Modi - President & COO
Mr. Prashant joined the YK Modi Group in 1996 and was involved with the restructuring of a group company operating a significant tea estate business and its subsequent sale to Unilever. Prior to this he held positions at Qualcomm. Inc. in San Diego, USA and ANZ Investment Bank in London. He holds a degree from Boston University in Bachelor of Science in Business Administration. His concentration was in finance with a minor in economics. He has also completed an executive education program at Harvard Business School. He is responsible for the day to day affairs of the Great Eastern Energy Corporation Limited. Read more about Prashant Modi on http://www.prashantmodi.com

Dolly Tayal, Genesis B-M
dolly.tayal@bm.com - +91 9899101140
807-B Signature Towers, South City,
Gurgaon 122 001
Tel: +91 124 408 8999,
Fax: +91 124 408 6663

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Great Eastern Energy plans 'sponsored' issue here

News-ID: 53113 • Views: 911

More Releases for India

Medical Tour India | Affordable Treatment In India
We at MedCredible look after the well being of the patients seeking treatment in India. Our support staff support is well trained in handling various situations arising due to cross border differences. All the patients can avail of high-quality treatment at an extremely affordable cost in a compassionate environment combined with ethical practices. With options of over 100 + Hospitals and Institutions, we at Medcredible ensure that we connect the
01-17-2011 | Health & Medicine
KJIVF
IVF India, Test Tube baby India
The aim of setting up KJIVF is to help infertile couples in achieving conception through modern diagnostic and treatment methods. KJIVF Centre has given the best results by blessing infertile couples of advanced age with children, these couples could never dream of becoming parents. Thousands of babies are conceived through in-vitro fertilization (IVF) each year; In-Vitro Fertilization (IVF) means fertilization outside the body. A baby developed from an egg that
Beach Holiday India- Best Beaches in India
The natural beauty, exotic locations and rich heritage has helped India to stand as the most visited and most popular tourist spot in the world. The status of “Incredible India”, is defined by an incredible range of nature’s blessings on the Indian subcontinent and this incredibility is doubled by one of the most fabulous tourism option available in the country that are the brilliant and majestic beaches in India.
ISO 27001 India, 27001 training India ISO
Coral eSecure is information Risk Management advisory with specific focus on Information Security (ISO 27001, ISO 17799, PCI, COBIT, HIPAA, GLBA, and DPA), Business Continuity (BS25999) and ITIL/ IT Service Management (ISO 20000). Coral is the FIRST Indian consulting organization which provides an Integrated Management System Consulting, Consisting of ISO 27001, ISO 20000 and BS25999 – ALL THREE IN ONE! Coral provides Consulting, Assurance audit and Training to address these
Interior Designers India, Designers and Architects India
Today, we have recognized ourselves as a booming beauty interior designing firm, offering services that include interior designing. We are a winning firm, which is based on the strong foundation of innovative and original ideas for interior, architectural and landscaping designing services. Synergy Corporate Interior Design Association has more corporate members. Who provide Products and services. We support Interior Designers India, Designers and Architects India. We are committed to the
Domain Registration India, Web Hosting India, Payment Gateway India
Indiainternet.in is a Quality Web Hosting Company India, provide all web related support and Web hosting services like linux web hosting, windows web hosting, web hosting packages, domain registration in india, Corporate email solution, business email hosting, payment gateway integration, SSL with supports like free php, cgi, asp, free msaccess, free cdonts, free webmail, web based control panel, unlimited ftp access, unlimited data transfer. During the domain registration process, you will