The much-awaited initial public offer of Navin Jindal-led Jindal Power Ltd, which is expected to rake in up to Rs 7,000 crore, may hit the capital market around October, a source close to the development said.

“Jindal Power would file the DRHP (Draft Red Herring Prospectus) soon and IPO can be expected around October-November,” he told PTI, without divulging the timeline for filing the DRHP.

Jindal Power was earlier expected to launch its IPO around March 2011, but the stake sale got delayed as the company felt the market conditions were not conducive.

The proceeds from the public offer will be utilised to part-fund JPL’s expansion projects in Chhattisgarh and Jharkhand, worth around Rs 22,000 crore.

Jindal Power will channelise 35 per cent of the power produced from the Chhattisgarh expansion project to the Chhattisgarh State Electricity Board (CSEB) and sell the rest through short, medium and long-term agreements.

The company will also execute two captive power projects of 660 MW at Godda and 1,320 MW at Dumka, in Jharkhand, by 2014.

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