Jindal Power looks to raise Rs 7,000 cr via IPO

Jindal Power Ltd (JPL) is looking to mop up Rs 7,000 crore with its initial public offering (IPO) which is set to hit the market by April this year.

“Jindal Power IPO may come by the end of March or mid-April. We have necessary clearances and the IPO will depend on the market conditions. We are waiting for the right moment,” said Mr Anand Goel, Director, Jindal Power Ltd, and Joint Managing Director, Jindal Steel and Power Ltd.

Mr Goel said that the proceeds from the IPO would be utilised to partially fund the Rs 22,000 crore expansion projects of the company in Chhattisgarh and Jharkhand.

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

Also on the anvil are two captive power projects, of 660 MW at Godda and 1,320 MW at Dumka in Jharkhand, which the company hopes to execute by 2014.

Steel capacity expansion

Commenting on the expansion plans at Jindal Steel and Power Ltd, Mr Goel said that the company will commission three million tonnes of steel making capacity at Angul in Orissa by the end of this year. This will be phase one of the project, which entails having a six million tonne per annum steel plant.

“We expect the first phase of Angul steel plant to be commissioned by the end of this year or the early part of next year,” said Mr Goel.

The company has plans to invest Rs 40,000 crore in Orissa over the next decade to produce 12.5 million tonnes of steel per annum and generate 2,500 MW of power.

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