KSK Energy Ventures Limited, a company with experience in developing and operating power plants, proposes to enter the capital markets on 23rd June 2008 with a public issue of 3,46,11,000 Equity shares of Rs 10 each through 100% book building process. The price band has been fixed at Rs 240 to Rs 255 per equity share of Rs 10 each. The Issue closes on 25th June 2008. The Issue will constitute 10% of the post-issue equity share capital of the Company. The equity shares are proposed to be listed on the BSE and the NSE. The Fitch Ratings India Pvt Ltd has assigned a grade of 3 (ind) out of a maximum of 5 (ind) for the Issue. Kotak Mahindra Capital Co. Ltd, IDFC-SSKI Pvt Ltd, Morgan Stanley India Co. Pvt Ltd, Lehman Brothers Securities Pvt Ltd and Edelweiss Capital Ltd are the BRLMs for the Issue and Axis Bank Ltd is the Co-BRLM for the Issue.

The Promoter company, KSK Energy Limited, is incorporated and registered in Mauritius, and is a wholly-owned subsidiary of KSK Power Ventur plc, an Isle of Man incorporated entity listed on the London Stock Exchange’s Alternative Investment Market. The promoter company KSK Energy Ltd currently holds 61.39 % and L.B. India Holdings Mauritius I Ltd holds 31.57% of the pre-issue equity share capital of the Company.

KSK Energy Ventures Limited was established in 2001 to capitalize on the emerging opportunities in the Indian power sector and focus on developing, operating and maintaining power projects.

The Company proposes to utilize the net proceeds of the Issue to part fund its investment in Wardha Power Co. Pvt Ltd, either directly, or through KSK Electricity Financing India Pvt Ltd, to finance the equity component of the 1,800 MW coal-based thermal power plant at Chhattisgarh. KSK Energy Ventures Limited has received an aggregate Rs. 415.34 crore pursuant to subscription in the Pre-IPO placing of Equity Shares at Rs.240/- per share by:

1. Macquarie Bank Limited, United Kingdom,

2. Tree Line Asia Master Fund (Singapore) Pvt. Ltd, Singapore,

3. GE Capital (International), Mauritius,

4. Universities Superannuation Scheme Limited, United Kingdom,

5. Infrastructure Development Finance Company Limited, India and

6. Axis Bank, Limited, India

KSK Energy Ventures has operational power plants capable of generating 144 MW of power, and power projects under construction that are capable of generating an aggregate of 675 MW of power. It has entered into multiple PPAs with captive consumers. The Company has three power projects under development and five planned projects that are capable of generating an aggregate 8,318 MW of power.

The Company supplies power to a combination of industrial and state-owned consumers in India.

Disclaimer
KSK Energy Ventures Ltd is proposing, subject to market conditions and other considerations, a public issue of the equity shares and has filed the Red Herring Prospectus with Registrar of Companies (ROC), Hyderabad. The Red Herring Prospectus will be available on the website of SEBI at www.sebi.gov.in, the website of the Book Running Lead Managers at www.kotak.com, www.sski.co.in, www.morganstanley.com/indiaofferdocuments, www.edelcap.com, www.axisbank.com and the website of the Company at www.ksk.co.in.

This press release does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any equity shares, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.

The Equity Shares have not been and will not be registered under the US Securities Act (“the Securities Act”) or any state securities laws in the United States and may not be issued or sold within the United States or to, or for the account or benefit of, “U.S. persons” (as defined in Regulation S under the Securities Act), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

Any potential investor should note that investment in equity shares involves a high degree of risk. For details, see the section titled “Risk Factors” of the Red Herring Prospectus, which has been filed with the Registrar of Companies.

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