JSW Energy to raise Rs 2700 crore via IPO
JSW Energy will come out with its Initial Public Offer (IPO) on December 7, 2009 in order to raise Rs 2,700 crore. The issue will close on December 10, 2009. This IPO will be the first from the JSW Group in the past 15 years, said Sajjan Jindal, vice chairman and managing director.
The price band for the issue will be announced by the company three days prior to the opening of the issue. At least 60 per cent of the issue will be allocated to the qualified institutional buyers (QIB)s, out of that five per cent shall be available on a proportionate basis to mutual funds.
JSW Energy has 860 Mw of operational generating capacity and 2,790 Mw of generating capacity in the construction or implementation stage. Moreover, it has power generation projects at an early stage under development, with a proposed combined installed capacity of 7,740 Mw.
In the recent concluded IPOs, the power sector companies such as Adani Power and Indiabulls Power had raised Rs 3,020 crore and Rs 1,700 crore respectively.
The fund raising exercise by the company will be partly utilized to fund five upcoming plants with a total capacity of 3410 megawatts at the cost of around Rs 13,000 crore with a debt-equity ratio of 3:1. The part of the IPO proceeds will also be utilized for investing in transmission project as well as mining operations and to service corporate debt of the company.
Source: Religare Technova
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