Great Eastern Energy Corp (GEECL), a coal-bed methane explorer, plans to raise around Rs 400 crore through an initial public offer (IPO) by December-end to fund expansion plans.

“We definitely plan to hit the market by the end of this calender year. We plan to raise around Rs 400 crore and will offer 5.9 million shares,” GEECL Chairman and Managing Director Y K Modi told PTI.

The London-listed company has filed a Draft Red Herring Prospectus (DRHP) with market regulator SEBI and is in the final stages of getting necessary approvals, he said.

GEECL plans to dilute 10 per cent equity through the public issue.

Enam Securities, ABN-Amro and SBI Capital Markets are the book-running lead managers for the IPO.

“We have a capex of Rs 200 crore each for the next two years. This involves drilling more wells,” Modi said, adding the company has a license to operate in the block till 2036.

While it has completed drilling of 23 wells, GEECL currently has 13 wells under various stages of completion.

The company produces 3 million standard cubic metres (mmscmd) of gas per day from its 210 sq km block at Raniganj in West Bengal.

The block has 1.92 trillion cubic feet of in-place gas reserves.

source: Sify Finance

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