JSW Energy to float IPO, aims to mop up Rs 1000 cr

Sajjan Jindal-promoted JSW Energy will come out with a Rs 1,000 crore initial public offering (IPO) for funding its expansion programmes.

Seshagiri Rao, director-finance, JSW Steel, said plans for the IPO would be finalised over the next few months.

Post-issue, promoters' stake in the company would be diluted by around 10 per cent. At present, promoters hold 100 per cent stake in the company.

The IPO proceeds would be used for funding JSW Energy's Rs 12,000 crore expansion. "The investment would be made over a period of three years," he said.

JSW Energy is setting up a 1,000 mw lignite-based power plant in Rajasthan and a 1,200 mw coal-based plant in Maharashtra.

JSW Energy has signed a memorandum of understanding (MoU) with the government of Gujarat to generate a 1,000 mw power in Junagarh district.

Plans are on the anvil to execute power projects in West Bengal, Jharkhand and Andhra Pradesh. The company is also pursuing plans to enter into the hydel energy sector in Himachal Pradesh and Sikkim. JSW is planning to foray into the transmission sector.

The company also supplies power to JSW Steel and Power Trading Corporation.

JSW Energy has been awarded the operation and maintenance (O&M) contract of the 100 mw captive power plant for JSW Steel. The O&M contracts for the 130 mw captive power plant at JSW Steel and the 2X30 mw plant at Siscol being executed by JSW Steel would also be entrusted to JSW Energy.

Earlier, Sajjan Jindal had said the power project in West Bengal would have a capacity for 1,000 mw, which could go up to 2,000 mw. The project was estimated to cost Rs 4,000 crore.

JSW Energy was formed in 1994, as a joint venture between the Jindal group and Tractebel SA of Belgium. The name was Jindal Tractebel Power Company.

When Tractebel sold its shares in 2001 to ICICI, IDBI and the Jindal group, it consequently came to be owned fully by the Jindal group.