GVK POWER AND INFRASTRUCTURE LTD-IPO

Issue Opens: 02 February, 2006
Issue Closes: 07 February, 2006
Issue Size : 8,275,556 (No. of Shares)

Lower Price Band : Rs.260
Upper Price Band : Rs.310

Application Multiple: 20 and in multiples of 20.

Information URL : http://www.gvk.com Click for More Info
Prospectus URL : http://www.sebi.gov.in/dp/gvkpil.pdf

ISSUE Description:

OBJECTIVE OF THE ISSUE

* GVKPIL intends to contribute part of the equity required by GPL to establish a 464 MW Dual Fuel Combined Cycle plant located in the state of Andhra Pradesh
* Repayment of bridge finance availed for funding the equity of GPL Power Project
* Repayment of short term and long-term debt of GVKPIL
* Achieving the benefits of listing their Equity Shares

Competitive Strengths

* GVKPIL is among the first IPPs in India. Owing to this they have an advantage over new operators of power plants with respect to familiarity of operations and experience.
* Their ability to meet project targets on time adjunct with their excellent quality of operations provides them with a significant competitive advantage in the industry
* They have an assured source of revenue from the following sources:

A take -or -pay PPA with APDISCOMs
Tariffs from Jegurupadu Phase I PPA

* They enjoy the benefits of economies of scale through the use of shared facilities between its projects
* They possess a strong managerial experience in this industry and promote continuous training and development of personnel.

Strategy

* To continue to invest in expansion of generation capacity
* To secure access to long term supplies of fuel
* Expanding further into operations and maintenance
* To capitalize upon opportunities presented by the Electricity Act, 2003
* To identify new investment opportunities