Power firm JSW Energy today said it will open bids for its initial public offer (IPO) on December 7 to raise a total of Rs 2,700 crore to fund the expansion plans.
"We are launching the IPO on December 7 and bids will close on December 9. The total size of this issue is Rs 2,700-crore," JSW Energy Chairman and Managing Director Sajjan Jindal told reporters here today.
However, he declined to reveal the percentage of stake that would be diluted through the IPO. JSW Energy will disclose the price band on December 3 as per regulations stipulated by the market watchdog Sebi.
"We will have anchor investors, but it is not yet finalised," Jindal said.
The Sebi allows companies going for IPOs to allocate 30 per cent of the portion reserved for qualified institutional buyers (60 per cent) in an issue, through a bidding process.
The company said 60 per cent of the issue will be allocated to qualified institutional buyers, of which five per cent (excluding anchor investors) would be made available to mutual funds. "Of the total money that will be raised, Rs 475 crore would be used to repay debts," Jindal said.
IPOs of power utilities like Adani Power and state-run NHPC had raised around $2 billion this fiscal.