Jindal Power aims to raise Rs 7,000 cr through IPO

Naveen Jindal-promoted Jindal Power will mop up about Rs 7,000 crore through a public

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offer within six months.

Jindal Power plans to expand electricity generation capacity to 6,000 mw by 2013 against the prevailing 2,000 mw, Jindal Steel and Power (JSPL) executive vice-chairman and managing director Naveen Jindal told reporters on Monday on the sidelines of the India Economic Summit.

“We will come up with an IPO within six months,” he said. However, Jindal Power, a subsidiary of JSPL, may have to file draft papers for the proposed issue again as validity of the prospectus filed in December last year expires next month. As per Sebi norms, draft papers for a prospectus are valid for a year.

Jindal Power will use part of the money to build and develop coal-based power plants.

Jindal said JSPL plans to raise steel production capacity to 10 million tonnes per annum in three years from 3 million tonnes at present.

Jindal Power is implemeting a 2,400 mw plant near its 1,000 mw pithead merchant project at Raigarh in Chhattisgarh. The company also plans to construct power plants in Jharkhand and Arunachal Pradesh under MoUs with respective governments.

JSPL is mulling to invest $ 2.1 billion to develop the El Mutun iron ore deposit and set up a steel plant in Bolivia’s Santa Cruz area, for which the company has been granted approvals and 3,000 acres to commence the project. JSPL reported a consolidated net profit of Rs 894 crore for the quarter ended September 30, 2010, compared with Rs 808.4 crore in the year-ago period.