JSW Energy to launch Rs2700 crore IPO next month
24 Nov 2009
Power company JSW Energy, part of the JSW Group, on Monday said it would launch an initial public offering (IPO) on 7 December to raise Rs2,700 crore.
"The price band will be declared on 3 December," Sajjan Jindal, vice-chairman of the JSW group, told reporters Mumbai, adding that the offer will close on 9 December. JSW Energy has current operational capacities of worth 995 mw, and is already in the profit zone, Jindal said.
"Getting anchor investors for the IPO is an option given by SEBI (the Securities and Exchange Board of India), and we may go for that," chief financial officer Pramod Menon added. He did not provide details.
He said the firm has consolidated debt of Rs7,676 crore and would use the proceeds from IPO for prepaying some of its debt as well as for expansion.
Three power firms - Adani Power, Indiabulls Power, and state-run National Hydropower Corp (NHPC) - have gone for listing on Indian bourses in 2009, and are at present trading below their issue price.
JSW Energy plans to take its total capacities to 3,140 mw by December 2010 and expand it to 11,380 MW by 2015, S S Rao, joint managing director and chief executive of the firm, said.
Currently, JSW Energu has access to limited thermal coal reserves in India, and is largely dependant on imports. In order to fuel the proposed power plants, the firm is exploring opportunities in countries like Australia, Indonesia and South Africa for acquiring mines, said Jindal. JSW Energy plans to import 13 million tonnes of coal for its upcoming power plants at Ratnagiri and Vijaynagar.
