EESL to launch IPO post strategic placement of bonds in UK

The government-owned Energy Efficiency Services Ltd (EESL) may soon launch an initial public offering as a part of its plan to introduce its power savings business model to new markets, including the UK. 

The company’s MD Saurabh Kumar confirmed in an interview to Bloomberg that the IPO will most likely be launched in the fourth quarter of this fiscal, post a strategic issue of USD 100 million in Masala Bond and Dollar Bonds in the UK in September 2017.

Kumar also stated in the interview that the company doubled its revenue to USD 14 billion rupees in FY17, however, the fourth quarter results are yet to be declared by the company.   

According to the report, the company is likely to invest USD 129 million in energy efficiency programmes in the UK over the coming three years.

These plans are expected to be announced by Piyush Goyal, the Minister for Power, Coal and Mines, during his visit to London on May 13, 2017.  

EESL is a joint venture between the Ministry of Power and state-owned power sector companies, including NTPC, Rural Electrification Corporation, Power Grid Corporation of India, Power Finance Corporation and the Bureau of Energy Efficiency.