JSW Energy plans to hit the capital markets in the third week of October to raise around Rs 3,000 crore by diluting 10 per cent equity stake.
"If everything goes as planned, including SEBI clearances and filing the RHP (red herring prospectus), then we will definitely have the IPO opening in the third week of October or around Diwali," JSW Energy Ltd Joint Managing Director and CEO S S Rao said here.
The book-running lead managers to the issue are JM Financial Consultants, Kotak Mahindra Capital Company, ICICI Securities, IDFC-SSKI, JP Morgan India, SBI Capital Markets, Morgan Stanley India and IDBI Capital Market Services.
JSW Energy will deploy about Rs 2,135 crore from the proceeds of the IPO for developing identified projects aggregating to 2,790 Mw over the next four years.
Besides, part of the funds will be used to set up a 400 KV transmission line, a mining venture and to service debt.
JSW Energy is the third power firm to go for a public issue this year after state-run NHPC Ltd and Adani Power.
Adani Power, which got listed on the bourses last week, saw a lukewarm debut as the stock opened at a premium of just five per cent.
"I am confident our IPO will do well. We are a real and profitable company with operations on the ground," Rao said in response to a query whether the company doubted investor enthusiasm.
"By 2015, we will have 11,000 Mw of installed capacity. We want to enter into all verticals of this business, including transmission, distribution and equipment manufacturing. Maybe our IPO will turn the market around," he added.
JSW Energy currently generates 560 Mw of power from a plant in Karnataka and has 3,090 Mw of generating capacity in implementation phase.
It also has power generation projects with a combined installed capacity of 7,740 Mw at an early stage of development.
The company will commission the first unit of its 1,200 Mw coal-fired plant at Ratnagiri in January 2010, Rao said, adding the whole plant will be operational by September 2010.
The company has already signed 25-year long Power Purchase Agreements (PPA) with the state governments of Rajasthan and Maharashtra for selling power from the plants.
JSW Energy will annually import 13 million tonnes of coal for its Ratnagiri and Vijaynagar power plants.
Apart from scouting for coal properties within the country, the company has secured coal supplies from block in Orissa where it holds 11 per cent stake.
