Sri Lanka power firm looks for Rs600mn in IPO

Sri Lanka's Prime Minister Ranil Wickremesinghe arrives with flowers to receive blessings at the Gangaramaya Buddhist Temple, Colombo, Sri Lanka on Wednesday 4 April 2018. On wednesday (4), Wickremesinghe survived a no-confidence motion in the Sri Lankan parliament with a 46 vote majority after a 12-hour debate with 122 MPs voted in his support while 76 MPs voting to remove the prime minister. (Photo by Tharaka Basnayaka/NurPhoto via Getty Images)

Sept 08, 2009 (LBO) – Sri Lanka’s Hemas Power, a unit of listed Hemas Holdings is seeking up to 626 million rupees through a sale of 31.3 million shares to increase investments in renewable energy.

The firm is pushing for growth by moving into renewable energy.

It already has a 2MW run of the river plant on Hulu Ganga, built by the unit Giddawa Hydro Power (Pvt) Ltd, which was connected to the national grid in October 2008.

The firm has a 15 year power purchase agreement with the CEB. In January 2008 it had bought Okanda Power Grid (Pvt) Ltd, which was approved to build a 1.18MW plant on Magal Ganga in the Kegalle District.

The company wants to increase its capacity to 2.4MW.

Managing director Kishan Nanayakkara says the firm is looking at wind power “cautiously.” Biomass was also an option.

Nanayakkara says there is scope for alternative power because a national policy prescribes that 10 percent of should be alternative. He says the firm has strong project management skills to keep projects on schedule and costs low.

Along with IPO funds, the firm says its balance sheet can also be leveraged to generate around two billion rupees for future investments. The off