Caparo Energy, a power producer focused on developing wind farms in India, has completed a £50.18 million (US$79 million) placement of ordinary shares on London’s AIM market. The placement involved 43,636,000 new shares (26.7% of Caparo’s share capital) and was routed through Caparo’s holding company in Guernsey. The placement gives Caparo a post-admission market capitalization of approximately US$297 million.
Caparo will use the funds to develop wind farms in India. It plans to achieve a generating capacity of 3,000 megawatts by 2016 and a further 2,000 megawatts by 2017. Caparo partnered with Indian wind turbine producer Suzlon for the first phase of its development. It is currently discussing the acquisition of land and turbines for phase two.
Mayer Brown, led by corporate partners William Charnley, Paul de Bernier and Sandy Bhogal, advised Caparo Energy on the listing. The team also included associates James Broadhurst, Linda Lee, Archanna Ramu, Stephen Green and Simon Fisher.
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“With the widening energy supply gap in India, Caparo Energy’s timing is perfect,” said de Bernier, who is the co-head of Mayer Brown’s India practice. “There are substantial opportunities for private operators to help the government fill this energy gap.”
Guernsey-based law firm Carey Olsen advised on the legal and regulatory aspects of establishing Caparo’s Guernsey holding company and its subsequent admission to AIM. The Carey Olsen team was lead by partner Tom Carey with senior associate Tony Lane and associate Oliver Quarmby.
Carey said: “We are seeing a marked increase in IPO work from businesses based in India [that] want to list holding companies on AIM or the main list in order to access the international capital markets. It is fantastic that they see Guernsey as the conduit through which they can achieve this.”
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