First Day of Dealings
October 12 2010 - 1:00AM
UK Regulatory
TIDMCEL
RNS Number : 2197U
Caparo Energy Ltd
12 October 2010
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO
THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN
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| Press Release | 12 October 2010 |
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Caparo Energy Limited
("Caparo Energy" or the "Company")
First Day Dealings
The board of directors of Caparo Energy, a Guernsey company that is the holding
company for subsidiaries (together, the "Group") that seek to generate wind
power in India, is pleased to announce its admission to the AIM market of the
London Stock Exchange ("Admission") and the commencement of dealings in its
ordinary shares under ticker symbol CEL.
The Company has raised GBP50.2 million in a placing of 43,636,000 new Ordinary
Shares (the "Placing"), representing 26.7 per cent. of the enlarged ordinary
share capital of the Company. The approximate market capitalisation of the
Company following Admission is GBP188.2 million.
Strand Hanson Limited is acting as nominated adviser in relation to the
Admission and Mirabaud Securities LLP is acting as broker.
Overview
Caparo Energy is focused on becoming one of the leading independent power
producers in India and is seeking to generate predictable and long-term cash
flows by building up a portfolio of wind power generating assets in the Indian
wind energy market. The Group intends, in due course, to acquire and develop a
portfolio of wind farms with a target total annual installed capacity of up to
5,000 MW, which it intends to develop in two concurrent phases: Phase I
consisting of 3,000 MW with a target completion date of 2016; and Phase II
consisting of 2,000 MW with a target completion date of 2017.
For Phase I, the Company, through its subsidiary Caparo Energy (India) Limited
("Caparo Energy India"), has entered into a business partnership agreement with
Suzlon Energy Limited ("Suzlon"), one of the world's leading wind turbine
generator manufacturers, to acquire up to 3,000 MW of wind power generation
farms.
For Phase II, Caparo Energy India is in advanced discussions to acquire land and
turbines from international vendors in connection with wind power farm
development in wind-rich states in India, including Karnataka, Maharashtra,
Tamil Nadu and Andhra Pradesh.
The Company believes this should provide both geographic and customer-base
diversification to the Group's portfolio and that these sites will, if and when
acquired, be suitable for installing an additional 2,000 MW of capacity by 2017.
Key investment opportunity
The Company believes the following Group attributes and factors will be
attractive to potential investors:
· the Government of India is seeking to double the country's installed power
capacity to 342 GW and more than treble its clean energy capacity to 54 GW by
2017;
· the Group plans to accumulate a substantial portfolio of wind power
generating assets in India's relatively well established, but fragmented wind
energy market (i.e., not disproportionately dominated by other producers), which
should have considerable growth prospects in the near and medium term;
· Caparo Energy India has an agreement in place with Suzlon, one of the
leading global wind turbine generator manufacturers, and the largest in India,
for up to 3,000 MW of operating capacity and grid connected wind farms;
· the Company believes that ongoing negotiations with infrastructure
companies and wind turbine manufacturers should enable the Group to acquire and
develop suitable sites for up to 2,000 MW of operating capacity and grid
connected Phase II wind power generation farms by 2017; and
· the Company has arranged debt financing which, together with the proceeds
from the Placing, should enable the roll-out of initial projects.
Ravi Kailas, the Company's Chief Executive Officer, said:
"We are delighted that the AIM flotation of the Company has been completed
successfully and we now look forward to working with our new institutional
shareholders.
"The widening energy supply gap in India presents the Company with an extremely
exciting opportunity. Through our business partnership agreement with Suzlon,
India's largest and only fully-integrated wind turbine producer, we plan to
accumulate a substantial portfolio of wind power generating assets. While
India's renewable energy market is relatively established, it also has
considerable growth prospects in the near to medium term, as the government
creates incentives for private operators to help fill the country's energy gap.
Caparo Energy looks forward to capitalising on this urgent market need, and
unlocking continued economic and social development in one of the world's most
significant markets, with a view to becoming one of India's leading energy
businesses and a premier owner and operator of wind farms across the country."
Further information on the Company can be found at www.caparoenergy.com.
- Ends -
For further information please contact:
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| Caparo Energy Limited | |
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| Ravi Kailas, Chief Executive Officer | +44 (0) 20 7398 7702 |
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| | |
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| Strand Hanson Limited | |
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| Angela Peace / Paul Cocker / James | +44 (0) 20 7409 3494 |
| Harris | |
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| | |
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| Mirabaud Securities LLP | |
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| Peter Krens / Rory Scott | +44 (0) 20 7878 3360 |
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| | |
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| Abchurch Communications | |
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| Henry Harrison-Topham | +44 (0) 20 7398 7702 |
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| Heather Salmond | +44 (0) 20 7398 7704 |
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| henry.ht@abchurch-group.com | www.abchurch-group.com |
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NOTE TO EDITORS:
Executive Directors
Ravi Kailas, Chief Executive Officer, age 44
Mr. Kailas has 20 years of entrepreneurial experience in telecoms, software and
real estate. He was the founder of a number of start-up companies, including Zip
Global Network, a telecom services company, which was subsequently sold to Tata
Teleservices; Xius Technologies, a telecom software company which launched the
world's first inter-operator prepaid roaming service and which was merged with a
leading SEI CMM Level 4 software company; and Altius, a real estate investment
company which was later sold to The Chatterjee Group. He has a Bachelors degree
in Electronics and Communications Engineering from Osmania University and a
Masters degree from The Graduate School of Business, Stanford University.
Vikram Kailas, Chief Financial Officer, age 30
Before joining the Group, Mr. Kailas worked in the power and utilities
investment banking group at Credit Suisse in New York, where he was involved in
a number of renewable energy transactions, including a US$6 billion exit
financing for Calpine, a US$300 million loan for First Energy, a US$1 billion
capital raise for First Solar and the sale of Airtricity's US operations to E.On
and the European assets to Scottish & Southern Energy. Prior to joining Credit
Suisse, Mr. Kailas worked for Deloitte Consulting in Hyderabad, India. He has a
B.Tech in Mechanical Engineering from the Indian Institute of Technology,
Madras, and an
MBA from the Yale School of Management. He is a nephew of Ravi Kailas.
Alastair Cade, Director, age 38
Mr. Cade was one of the founders of Daniel Stewart Securities plc, a London
based institutional stock broking and corporate finance firm and was appointed
Managing Director in 2003. Subsequently, Mr. Cade set up a private investment
vehicle concentrating on agriculture and renewable energy. He has a Masters
degree in Economics from St. Andrews University.
Non-Executive Directors
Hon. Angad Paul, Non-Executive Chairman, age 40
Mr. Paul is the Chief Executive of the Caparo Group and has overseen the
acquisition by the Caparo Group of a number of companies since 2007 and the
Caparo Group's entry into Dubai and China. Mr. Paul attended the Massachusetts
Institute of Technology in Boston, USA, where he received BAs in Economics and
Media Arts and Sciences.
Rohit Kumar Phansalkar, Non-Executive Director, age 65
Mr. Phansalkar is the Chairman and CEO of RKP Capital, Inc., a US based merchant
banking boutique. He was previously the Chairman and CEO of Osicom Technologies,
an optical networking company. He was the co-founder, Vice Chairman and CEO of
Newbridge Capital, a private equity firm investing in India, and formerly the
Head of Energy Finance Group at Oppenheimer & Co. Mr. Phansalkar was co-head of
the Energy Finance Group at Shearson American Express, Managing Director of Bear
Stearns and Managing Director at Oppenheimer & Co. Mr. Phansalkar was the
Founding Chairman of The India Fund. Mr. Phansalkar received an MBA from the
Harvard Graduate School of Business.
Charles Wilkinson, Non-Executive Director, age 67
Mr. Wilkinson is a solicitor who retired from Lawrence Graham LLP in March 2005.
While at Lawrence Graham, he specialised in corporate finance and commercial
law, latterly concentrating on investment trust and fund work. He is currently
chairman of both Asset Management Investment Company PLC, an investment trust,
and Premier Renewable Energy Fund Limited, a listed investment company, and is a
director of Landore Resources Ltd, a Guernsey based mining exploration company.
Philip Swatman, Non-Executive Director, age 60
Mr. Swatman was appointed Chairman of Merlin Corporate Reputation Management, a
public relations advisory firm based in London, in March 2009, where he focuses
particularly on matters of business development. Prior to this, Mr. Swatman was
Vice-Chairman of Investment Banking at NM Rothschild from 2001 until his
retirement in September 2008, having originally joined NM Rothschild in 1979 as
a corporate financier, becoming a Director in 1986. He subsequently became a
Managing Director and later Co-Head of Investment Banking. Mr. Swatman qualified
as a Chartered Accountant with KPMG after graduating from Christ Church, Oxford
and is a Fellow of the Institute of Chartered Accountants. Mr. Swatman is a
nonexecutive director at New England Seafood International Limited and Investec
Structured Products Calculus VCT PLC.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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