JSW Energy readies $600 mn IPO

JSW Energy readies $600 mn IPO

Mumbai: JSW Energy Ltd, a group firm of steel maker JSW Steel Ltd, plans to file a regulatory application in the next two days for an IPO worth about $600 million, three sources familiar with the deal said on Monday.

JSW Energy, which aborted an IPO worth up to $1 billion last year, joins a rash of power firms looking to raise equity after a vigorous stock market rally since March.

JM Financial, ICICI Securities, JPMorgan, SBI Capital Markets and Kotak Mahindra Capital Co. are among bankers arranging the issue, sources said, declining to be named as they are not authorized to speak to the media.

A senior company official could not be immediately reached.

The firm plans to use its IPO proceeds to fund expansion. The company is building power plants with a combined capacity of nearly 3,000 MW and has plans to develop utilities in western, eastern and southern India, its website showed.

Adani Power’s $630 million IPO closed subscribed more than 20 times on 31 July and state-run utility NHPC’s $1.25 billion IPO, which opened on Friday, is already subscribed more than 3.5 times.

Indian firms have raised more than $8.5 billion in share sales so far this year, already surpassing the total for 2008.

India suffers from a peak power deficit of about 12%, and power companies are raising funds to expand their generating capacity.