JSW Energy to open bids for IPO on Dec 7

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Mumbai: The initial public offer of Sajjan Jindal-led JSW Energy will open on December 7, with an aim to raise Rs 2,700 crore. Bids will close on December 9, while the price band would be announced on December 3.

The proceeds would be used for its plans to increase generation capacity to 11,390 mw by 2015 from the present level of 995 mw and also for mining and transmission projects. Besides, JSW Energy would also use the proceeds to repay its debt of Rs 475 crore. JSW Group's consolidated debt as on September 30 is worth Rs 7,676 crore.

Jindal said the company would disclose the price band on December 3 as per Securities and Exchange Board of India norms. Earlier this month, the company got approval from the market regulator to go ahead with its IPO. Jindal said the company is looking to bid for ultra mega power projects and may tie up with other players, both domestic and international. He said of the 11,390 mw capacity, a large portion would be added through coal-based and hydro power projects. These projects are expected to come up on the western coast, West Bengal, Chhatisgarh, Jharkhand and Andhra Pradesh.

JSW Energy is actively pursuing plans to enter the hydro sector in Himachal Pradesh and Sikkim. JSW Energy chief financial officer Pramode Menon clarified that the company has no plans to develop any gas-based project. Menon said the company has already tied up coal for the upcoming projects.

Coal is being sourced from Indonesia, South Africa and Australia.

Menon said the generation of 300 mw of the imported coal-based Ratnagiri project in Maharashtra would begin by the end of March next year. About completion of transmission projects in Maharashtra, Jindal said the JSW Energy-MahaVitaran JV is expected to commission the first transmission line between Jaigad and Koyana by January and another line between Jaigad and Karhad by June.

On the JSW Energy-Toshiba JV, SS Rao, joint managing director and CEO of JSW Energy said the JV is expected to commission the first phase by 2011. The joint venture, in which Toshiba Corporation holds 75% and the Sajjan Jindal-led JSW Group 25%, will design, manufacture, market and maintain services of mid-to-large sized steam turbines and generators from 500 mw to 1,000 mw.

It aims to establish an independent production scale of 3,000 mw a year. The second phase would be completed by 2012.