Mumbai, December 29, 2008: Great Eastern Energy Corporation Ltd. (the "Company" or "GEECL"), has filed its Draft Red Herring Prospectus ("DRHP") with the Securities and Exchange Board of India ("SEBI"). GEECL believes that it is the first company to commercially sell coal-bed methane ("CBM") in India.
The Company, whose Global Depository Receipts ("GDRs") are listed on the Alternative Investment Market of the London Stock Exchange, expects to enter the Indian capital market soon with an Initial Public Offering ("IPO") of up to 91,280,501 equity shares of Re. 1 each ("Equity Shares") for cash at a price to be determined through a 100% Book-Building Process (the "Issue"). The Issue would constitute approximately 15.45% of the fully diluted post Issue paid up capital of the Company. The Equity Shares are proposed to be listed on Bombay Stock Exchange Limited and National Stock Exchange of India Limited.
Great Eastern Energy Corporation Ltd. is focused on the exploration, development, production, distribution and sale of natural gas from coal seams, commonly known as CBM. It produces CBM from its Block in Raniganj, West Bengal. The Block spans an aggregate area of 210 square kilometers and has an estimated 1.92 tcf of gas-in-place (according to a report issued by Netherland, Sewell & Associates, Inc. on June 1, 2007). The Company believes that it is the first company to commercially sell CBM in India in August 2007 and that the early mover advantage will allow it to be among the first companies to meet the demand for natural gas in West Bengal, and will help establish long-term relationships with large customers in the region. It has an experienced management and consultant team with international exposure.
Upon the completion of its pipelines, GEECL believes that it will be a fully vertically-integrated CBM company capable of exploring, producing, distributing and selling natural gas to end users through an integrated network consisting of drilling, production, compression, transportation and logistics services. The Company has already signed a franchisee agreement for supply and retail of CBM-based CNG through Indian Oil Corporation’s petrol pumps in Asansol, Durgapur, Raniganj and other cities across the state of West Bengal.
The Book Running Lead Managers ("BRLMs") to the Issue are Enam Securities Private Limited, ABN AMRO Asia Equities (India) Limited and SBI Capital Markets Limited.
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Union Budget