State-run Energy Efficiency Services Ltd (EESL) plans to enter the primary market to fund its energy efficiency programmes next year. The firm plans to use the funds from initial public offer (IPO) for leasing electric vehicles to companies and installing smart meters to measure power consumption.
EESL is a joint venture of four public sector enterprises - NTPC, PFC, REC and PowerGrid. Financial services company Investec has valued EESL at around Rs 5,000 crore. In an interview to Live Mint, EESL's managing director Saurabh Kumar said the company has a capital expenditure requirement of around Rs 25,000 crore over the next 3-4 years.
"While it is one thing that I keep on going back to NTPC and PFC, but they have their own capex plans. We will look at it (listing) next year and then we will decide when to do it," Kumar was quoted as saying in the report.
EESL is seen clocking a profit of around Rs 200 crore this fiscal year on a revenue of around Rs 4,000 crore, Kumar said. The company reported a profit of Rs 95 crore in 2018-19, while revenue from operations stood at Rs 1,837.6 crore.
As of March 31 2019, the company recorded gross debt of Rs 3,418.6 crore, a rise of 43% from the previous year. The firm deferred its IPO for the second time last year to financial year 2019-2020 citing revenue falling short of expectations during financial year 2017-2018. Revenue grew to Rs 1,400 crore during the year from Rs 1,200 crore in 2016-17.
The company had said it hope to double revenue to Rs 3,000 crore in 2018-19 and then go for an IPO in financial year 2019-20. In March 2017 too, EESL had said it could launch its IPO as early as the fourth quarter of financial year 2017-18.
By Aseem Thapliyal