India-focused power generator OPG Power Ventures has raised £60 million to finance additional generating capacity in India. The Alternative Investment Market-quoted business raised the money at 93p a share; OPG joined AIM at 60p a share in May 2008.
OPG has 107MW of generating capacity in operation and will have enough cash to build a further 555MW of capacity. There was still £17 million of unrestricted cash on the balance sheet at the end of September 2010.
The company, whose target is to have 1,250MW operational by 2015, has already begun work on 383MW of new capacity. It has also bought 120 acres of land in Karnataka with potential for the construction of a 250-300MW power station. There is already a partially constructed 12MW thermal power plant on the land.
OPG has signed a memorandum of understanding with the Gujarat government for the development of 5,400MW of generation capacity, including 1,400MW of gas-based capacity.
Demand for power in India is growing fast. Industrial production rose by an annualised figure of 9% according to the latest data. However, new generating capacity is coming on stream more slowly than the Indian government had hoped, and this has created power deficits.
During the six months to September 2010, the existing capacity has realised prices of around 4.80 rupees per KWh. Group revenue grew by 56% to £8.95 million and the profit improved from £3.52 million to £4.06 million.
Market: AIM
Symbol: OPG
Price: 98p
12-month high/low: 110p/58.25p
Market cap: £344m
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