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Warburg-Backed ACB (India) Said to Plan Initial Offer in 2011

ACB (India) Ltd., a maker of coal washing equipment backed by Warburg Pincus LLC, plans to raise about $125 million in an initial public offering this year, said two people with knowledge of the matter.

IDFC Capital Ltd., Edelweiss Capital Ltd. (EDEL), Kotak Mahindra Capital Co., JPMorgan Chase & Co. (JPM) and Macquarie Group Ltd. (MQG) are among banks managing the sale in India, the people said, declining to be identified because the details are private.

New York-based Warburg Pincus, the private-equity firm that manages more than $30 billion, plans to sell part of its stake in the IPO in addition to the new shares issued by ACB, according to the people. The company may submit documents as early as this month to the Securities and Exchange Board of India for the sale, they said.

Warburg Pincus invested about $100 million in ACB from 2006 to 2008. Niten Malhan, a Mumbai-based managing director at the firm’s Indian unit, declined to comment on the IPO.

“Since the company is in a growing phase, we continuously seek funds through various means to fulfill the company’s target,” ACB Chairman Rudra Sen Sindhu said in a statement e- mailed to Bloomberg News. “The company’s management will make the adequate announcements once we are through with all the procedures and due diligence.”

ACB reported a profit of 2.21 billion rupees ($50 million) for the year through March 2009, according the most recent figures posted on its website.

To contact the reporter on this story: Ruth David in Mumbai at rdavid9@bloomberg.net

To contact the editor responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net

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