Business Standard reported that Manoj Jayaswal led Abhijeet Group, being probed by the Central Bureau of Investigation in connection with the controversial coal block allocation, has withdrawn the initial public offering plans for its power unit to raise up to INR 1,375 crore.

DSP Merrill Lynch, the lead manager for Abhijeet Power’s IPO, informed the Securities and Exchange Board of India in a letter dated September 25 that the issue had been withdrawn, information available on the market regulator’s website showed.

The CBI is probing AMR Iron & Steel, an arm of Abhijeet Group, for alleged misrepresentation of facts while seeking allocation of the Bander coal block, about 125 km from Nagpur.

Aspokesperson of Abhijeet Power said that “Abhijeet Power is setting up power plants in the states of Maharashtra, Jharkhand and Bihar through its subsidiaries and JV, aggregating capacity of 2,761 MW Of that, 271 MW n Maharashtra is operational and the balance 2,400 MW is under construction. All projects have achieved debt closure and for part-funding of equity for power projects in Jharkhand and Bihar, APL had filed a DRHP (draft red herring prospectus) with the Sebi on June 30, 2011 to raise equity capital of INR 1,375 crore.”

He added that “Since then the promoters have infused additional funds to meet project requirements, resulting in a lower requirement of equity from the IPO. Further, any issuance of equity shares post the DRHP to promoters will result in a change in the capital structure and require fresh filing of the DRHP. In view of that, we will again file a DRHP with the Sebi, subject to suitable market conditions, receipt of requisite approvals and other considerations.”

Abhijeet Power had filed the draft offer document with the Sebi for its IPO in June 2011. The company was looking to raise INR 1,375 crore through the issue.

Source - Business Standard

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