Jindal Power plans Rs10,000 crore IPO

Naveen Jindal is a Member of Parliament, Executive Vice Chairman and Managing Director of Jindal Steel and Power Ltd

Close on the heals of the group company JSW Energy Ltd, which has just completed a Rs2,700 crore ($580 million) public offer, Jindal Power Ltd (JPL), a subsidiary of the Naveen Jindal-led Jindal Steel and Power Ltd (JSPL) plans to raise up to Rs10,000 crore ($2.1 billion) through a mega IPO, a filing with the Bombay Stock Exchange (BSE) said yesterday.

The proposed IPO would be the second-largest in Indian corporate history, next only to the Rs11,800 crore raised by Reliance Power Ltd, an Anil Ambani Group company in 2008. ONGC's divestiture in 2004 raised Rs9,500 crore, the second-biggest issue so far.

''JPL has informed that its board-of-directors in a meeting held on December 10, 2009 has decided to go for an initial public offer of the equity shares of Rs 10 each up to amount of Rs10,000 crore, subject to approval of shareholders. Jindal Power will be holding extra ordinary general meeting of the members of the company for obtaining their approval for the said IPO,'' the filing said.

JSPL is is part of the 60,000 crore ($12.8 billion) OP Jindal Group, a diversified business conglomerate.

JPL plans to use the issue proceeds for the construction of its two thermal power projects in Chattisgarh and Jharkhand, and two hydropower plants in Arunachal Pradesh.

The company is expanding the capacity of its existing 1,000 MW OP Jindal super thermal power plant near Raigarh in Chattisgarh by addint 2,400MW at an investment of Rs12,000 crore.