Great Eastern Energy to launch IPO by this December; to raise Rs 400 crore

Great Eastern Energy Great Eastern Energy Corporation Limited (GEECL), the oldest producer of Coal Bed Methane in India, has plans to raise around Rs 400 crore through an initial public offer.

GEECL will dilute 10% stake in the company by offering 5.9 million shares in the market and hit the market by the end of this year.

A company official, close to development said, that GEECL has filed a Draft Red Herring Prospectus (DRHP) with market regulator SEBI and is in the final stages of getting necessary approvals.

The proceeds of the IPO will be used for the phase-1 expansion of the CBM block in Raniganj, West Bengal to produce 35 MMcfd by mid-2011.

GEECL's current production capacity is 0.1 mmscmd (million cubic metres per day) from 30 wells.

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