JSW Energy, part of Sajjan Jindal-led JSW group, is entering the capital market with an initial public offer of equity shares at a price to be decided through a 100 per cent book-building process, aggregating Rs. 2,700 crore. The price band for the issue has been fixed between Rs.100 and Rs.115 per equity share.
The bid opens on December 7 and closes on December 9. The company is offering a discount of Rs. 5 of the issue price to the retail individual bidders.
The equity shares are proposed to be listed on the Bombay and National Stock Exchanges.
Addressing presspersons here on Saturday, R.R. Pillai, Executive Director, JSW Energy, said that the company would utilise the proceeds of the issue to achieve the company’s plans to create 11,000 MW by 2015.
The company will be investing Rs. 7,106 crore in lignite mining at Barmer and creating power transmission line for 169 km at a cost of Rs. 5,800 crore.
Satyamurty writes from Bangalore
Joint Managing Director S. S. Rao told reporters in Bangalore that at least 60 per cent of the issue would be earmarked for qualified institutional buyers, out of which, after the anchor investor portion, 5 per cent will be proportionately allotted to all qualified institutional buyers (QIBs), including mutual funds. At least 30 per cent would be available to retail bidders. A liability of an IDBI loan of Rs.475 crore will be repaid post-issue. “We have so far invested Rs.3,000 crore in the energy sector.
“JSW Energy operates or has under construction, two generation plants of 260 MW and 600 MW in Karnataka, 3200 MW in Maharashtra, 1320 MW in Chhattisgarh, 1600 MW in West Bengal and 1620 MW in Jharkhand. Some plants, as in Rajasthan are located near working coal mines. Mr Rao said.