Jindal Power IPO to hit market by April

Jindal Power IPO to hit market by April

New Delhi: Navin Jindal-led Jindal Power’s initial public offering (IPO) to raise about Rs7,000 crore may get delayed by a month and is likely to hit the capital market in April this year, a senior official of the company said on Monday.

“Jindal Power IPO may come by end of March or mid-April, we have necessary clearances and the IPO will depend on the market condition, we are waiting for the right moment and the IPO size will be Rs7,000 crore," joint managing director Anand Goel told reporters here.

Jindal Power’s managing director R. S. Sharma had earlier said that the IPO is likely to come up in March, 2011.

The proceeds from the public offer would be utilised to part fund its around Rs22,000 crore expansion projects in Chhattisgarh and Jharkhand.

Jindal Power will channelise 35% 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 would also execute two captive power projects of 660 MW at Godda and 1,320 MW at Dumka in Jharkhand by 2014.

Meanwhile, another Navin Jindal-promoted firm Jindal Steel and Power will commission three million tonnes per annum capacity phase-I of the 6 million tonnes per annum steel plant at Angul in Orissa by the end of this year.

“We expect the first phase of three million tonnes steel in Angul by the end of this year or early next year," Goel said.

The company plans to invest Rs40,000 crore in Orissa to produce 12.5 million tonnes per annum steel in phases and generate 2,500 MW power over the next decade.