Returning to the primary market after a gap of almost 15 years, Sajjan Jindal-led JSW Group is launching an IPO for its power company JSW Energy Limited to raise Rs 2,700 crore through 100 per cent book building. The issue would open on December 7 and close on December 9.
“We will disclose the price-band of the IPO on December 3, two days before the bid opens for IPO, as per Securities and Exchange Board of India (SEBI) norms,” said Sajjan Jindal, vice chairman and MD JSW Group.
The firm would be spending the proceeds of the IPO to fund plants in Ratnagiri in Maharashtra and Barmer in Rajasthan and also to repay high-cost loans. “Of the total IPO proceeds, Rs 475 crore would be used to repay debt,” said Pramod Menon, chief financial officer of JSW Energy.
Total debt of the company stands at Rs 7,676 crore. The power company has a total generation capacity of 3,140 mw. It plans to reach the 11,390 mw capacity by 2015.