GEECL - Great Eastern Energy Corp. Ltd. - Great Eastern Energy affairs 'sponsored' issue

A aboriginal for Indian markets, AIM-listed close looks for liquidity.

Delhi-based Great Eastern Energy Corporation (GEEC) is planning a accessible issue, allotment of which will be “sponsored”, acceptation adopted shareholders will aswell breakable their shares for sale, a aboriginal for the Indian markets.

GEEC, a atramentous bed methane analysis and development aggregation answer by Yogendra Kumar Modi, is listed on the London Stock Exchange’s Alternative Investment Market (AIM).

The issue, which is apprehension approval from the Securities and Exchange Board of India (Sebi), is different in that such sponsored issues by Indian companies (like Infosys) accept so far been belted to across allotment sales by Indian companies.

Investment cyberbanking sources said GEEC affairs to mop up about Rs 1,000 crore, bisected of which will accrue to the aggregation and the blow to shareholders.

Notices beatific to the holders of GEEC’s Global Depository Receipts (GDRs) said the aggregation is planning a accessible action of 92.6 actor shares, absolute a beginning affair of 46.6 actor shares and almost an according amount offered by shareholders.

Depending on the response, the aggregation has an enabling accouterment for a “greenshoe option”, acceptation the aggregation can accumulate oversubscriptions to the admeasurement of 15 per cent of the affair size.

The aggregation has appointed ABN Amro, Enam Securities and DSP Merrill Lynch as advance managers for the IPO.

The aggregation has a paid up basic of Rs 54.46 crore, absolute Re 1 each, which will access to a little over Rs 59 crore.

GEEC was listed on AIM in 2005 and some of the above shareholders cover UK-based accounts conglomerates AEGON and Fidelity. The promoters authority about 66 per cent, of which about 32 per cent is in the anatomy of GDRs.

The apprehension to GDR-holders explains that the advertisement on the Indian markets is apprenticed by the charge for clamminess accustomed that low trading levels on AIM accomplish it difficult for investors to access or avenue the company.

The Indian advertisement is aswell all-important because beneath Sebi norms, a aggregation registered in India but listed across cannot opt for a follow-on affair across or a clandestine adjustment after advertisement on the Indian bourses first.

The alone two added companies that abatement in this chic are Rediff.com and Satyam Infoway, both of which are registered in India but listed on Nasdaq.

Meanwhile, bankers are in talks with Sebi over the sponsored allocation of the issue. “There are some issues in appellation of advice the name of the accessible actor at the time of filing the abstract red herring prospectus,” sources said.

GEEC has a licence for an over 210 sq km atramentous bed methane block in the Raniganj atramentous acreage in West Bengal area it has started production.

About GEECL:
Great Eastern Energy Corporation Ltd. (GEECL), a allotment of the YKM Holdings Group, is the aboriginal Private Sector Company in India to explore, develop, deliver and bazaar Coal Bed Methane. In December 2005, GEECL became the aboriginal Indian Company to be listed on the London Stock Exchange's Alternative Investment Market (AIM). The abstract bazaar capitalisation of the Company as of July 13, 2007 was GBP 172 actor / US$ 350 million.

The organization, headed by Mr. Y.K. Modi, is exploring & developing assembly wells for Coal Bed Methane in Raniganj coalfields, West Bengal. GEECL has completed 23 vertical assembly wells. All the wells are drilled, logged, cased, anchored and fractured. Apart from this 8 Core aperture accept accomplished for desorption and added studies. Learn added about GEECL on www.geecl.com.

Prashant Modi - President & COO
Mr. Prashant abutting the YK Modi Group in 1996 and was complex with the restructuring of a accumulation aggregation operating a cogent tea acreage business and its consecutive auction to Unilever. Prior to this he captivated positions at Qualcomm. Inc. in San Diego, USA and ANZ Investment Bank in London. He holds a amount from Boston University in Bachelor of Science in Business Administration. His absorption was in accounts with a accessory in economics. He has aswell completed an controlling apprenticeship affairs at Harvard Business School. He is amenable for the day to day address of the Great Eastern Energy Corporation Limited. Read added about Prashant Modi on www.prashantmodi.com

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