Friday, August 21, 2009

JSW Energy IPO likely in two months

New Delhi: Sajjan Jindal-led JSW Energy is looking to come out with its initial public offering (IPO) in the next two months to raise about Rs3,000 crore for partly funding its expansion plans.

“Provided we get the necessary regulatory approval, we may come out with an IPO in the next two months,” JSW Group CFO Seshagiri Rao said in an interview.

The company had last week filed for the Draft Red Herring Prospectus (DRHP) with Sebi to hit the capital market. The market watchdog normally takes 30 days to give its nod for the IPO, he said, adding: “Subject to that JSW Energy may come out with the offering.”

The company is targeting to install a capacity of 11,000 MW in the next five years which would entail an investment of about Rs55,000 crore.

Currently, JSW Energy is setting up a 3,200 MW super critical thermal power plant entailing an investment of Rs15,000 crore at Ratnagiri in Maharashtra.

The company had earlier withheld its plans to come out with an IPO citing weak market condition amid the global financial meltdown.

With improved market conditions, Adani Power and NHPC were the first two entities to give shape to their IPO plans. While, Adani Power got listed today at Rs105 on the Bombay Stock Exchange (BSE), a premium of 5% over its issue price, state-run NHPC is expected to get listed soon.

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