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Home arrow News arrow Power and Energy arrow Caparo Energy (India) to change its name to Mytrah Energy Limited
Caparo Energy (India) to change its name to Mytrah Energy Limited Print E-mail
Written by James   
Thursday, 11 August 2011
Bangalore: Caparo Energy (India) Limited, a wholly owned subsidiary of Caparo Energy, is proposing to change it's name to Mytrah Energy Limited. CEIL has just closed a second tranche of mezzanine funding

"As the Company's transformative growth continues, its identity has also evolved.  Accordingly, the Company is proposing to change it's name to Mytrah Energy Limited and we are excited by the Company's prospects of trading under this new identity," said Ravi Kailas, Caparo Energy's Chairman and Chief Executive Officer.

The second tranche of mezzanine financing, which is for a 4 year term, of Rs. 1,500m (US$33.5m) is being provided by the Infrastructure Development Finance Company Limited ("IDFC").

"The closing of the second tranche of mezzanine financing in a timely manner puts our company in a position to fund over 700 MW of wind projects without any dilution to existing shareholders. We are also pleased with the strengthening of our management team with people who have a proven track record in the industry. By placing 360 MW of orders with Suzlon for delivery by March 2012, the Company demonstrates again its ability to build utility scale wind power projects with an unprecedented efficiency," said Ravi Kailas.

The Board believes that this will result in enhanced equity returns for investors. The Company expects to repurchase/buy-back both tranches of mezzanine from internal cash flows and the issue of senior debt instruments, bonds or other debt refinancing, within three to five years. The Board believes that securing these two tranches of financing, totalling Rs 5,000 (US$112m), is a significant step forward for the business and anticipates that this additional funding, along with the Company's existing resources, would enable the Company to develop approximately 700 MW of wind projects.

R. Ramakrishnan has been appointed as President of CEIL. Prior to this appointment, he was CEO/Managing Director at GMR Industries (GMR Group is a diversified infrastructure group in India with interests in power, airports and roads) for four years before becoming Group Corporate Head of its Renewable Energy business. Previously, he was the Chief Executive of Sanmar Group and, prior to that, was with the Murugappa Group for 20 years where he worked in Sales & Marketing, International Business Development, Product Management, Manufacturing & Technical services.

Angad Paul, CEO of the Caparo Group, is stepping down from his current role as Non-Executive Chairman of the Company and will continue as a Non-Executive Director. Accordingly, Ravi Kailas  has been appointed Chairman of the Company, in addition to his current role as CEO of the Company. In addition, Charles Wilkinson, Independent Non-Executive Director of the Company based in Guernsey, will not be standing for re-election at the forthcoming AGM.

CEIL has placed specific purchase orders with Suzlon Energy Limited for a further 260 MW of wind projects for delivery by March 2012. When combined with the 100 MW ordered in February 2011, CEIL's total purchase orders have grown to 360 MW, of which 52 MW have already been commissioned, with the balance expected to be commissioned in stages by March 2012. The Company will release further updates of orders being placed for delivery by March 2012 in due course.

The new purchase orders for 260 MW cover five individual projects located in the states of Maharashtra, Gujarat, Karnataka and Rajasthan.  All of these sites have wind data using a met mast measured at different heights for an average period of over four years and are fully permitted.

The Company has selected these sites based on detailed analysis and independent wind studies completed by internationally recognised firms in this field, and the Board is confident that these projects represent some of the best sites being commissioned in India over the next two years and that the Plant Load Factors ("PLF") for these sites are very attractive.

Following the placing of these orders, which are ahead of the schedule previously announced, the Board anticipates that by March 2012 the Company will have a total of 500 MW of fully operational projects connected to the grid and generating cash flow. Additionally, the Board expects to achieve the full 1 GW of project orders with Suzlon by March 2013.

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