Sunday, August 2, 2009

JSW likely to come up with an IPO

Sajjan Jindal-owned JSW Energy may go for an Initial Power Offer to raise funds for its ambitious plans to step up power generation capacity to 12,000 MW from the present 800 MW. "We may look at the IPO if the market stabilises," JSW Group Chief Financial Officer MVS Seshagiri Rao said.

However, a company source said that the JSW had already been started "working on the initial public offering" and the draft red herring prospectus submission to the market regulator, Securities and Exchange Board of India, might be a matter of couple of months'' time. The company had earlier planned for an IPO, but scrapped the plan as markets nosedived owing to the global financial meltdown.

"Whatever we raise, it will be for the future growth of the company. All the existing projects that the company is working on currently are tied up with funds," Rao said, but declined to divulge the percentage of stake JSW Energy would dilute if it goes ahead with the IPO plan.

Adani Power was the first from the energy sector to hit the market after the unprecedented financial meltdown that crippled economies across the globe. The Rs 3,000 crore issue was over-subscribed over 21 times.

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