The action in the primary markets is heating up and the latest to join the bandwagon is JSW Energy. The company plans to raise up to Rs 3,000 crore through the IPO, out of which Rs 2,000 crore will be invested in ongoing projects, aggregating to 2800 mw over the next four years. Including its projects is the transmission sector too and that’s not all. They are also in talks with a European distribution major for a joint venture in India
JSW Energy, the power arm of Sajjan Jindal controlled-JSW Group, is the fourth power company to join the IPO bandwagon, but with Adani Power’s lacklustre debut on the capital, there is still a question mark as to whether the market still has an appetite for power IPOs.
JSW Energy had planned to hit the capital market last year to fund its massive power generation plans, but due to uncertain market conditions had to keep the plans on hold.
Now, with several power IPOs accessing the primary market, the company’s management is confident that the time is ripe and with a credible backing of concrete power plans, they hope investors will lap it up as a hot cake.
To fund all its on-going projects, which include thermal and hydro power plants, foray into transmission sector, diversification into distribution sector and supercritical equipment manufacturing, the company plans to invest Rs 15,000 crore over the next five years, out of which the debt portion will be Rs 9,000 crore.
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