JSW Energy eyeing stressed assets; may raise upto Rs 5,000 cr

Private sector power producer JSW Energy, which is looking to raise up to Rs 5,000 crore, is eyeing stressed projects for acquisition, a top official said today.
"Our growth stagnated for the past four years, but now we have decided to grow significantly. We have plans to raise Rs 5,000 crore to fund our expansion plans which will be organically as well as inorganically...We may not raise the entire amount at one time. There are a number of stressed projects we may look at acquiring, for which we will be using the funds," JSW Energy Chairman Sajjan Jindal told reporters on the sidelines of the company's 20th Annual General Meeting.

At this moment, I cannot give the timeline for raising the money, he added.
According to the company annual report, JSW Energy has sought an approval of its shareholders for mopping up Rs 5,000 crore through an issue of secured/unsecured redeemable non-convertible debentures on a private placement basis, as well as the utilisation of the funds.
Asked about the company's plan to acquire Lanco Infratech's 1,200 MW thermal power plant at Udupi in Western Karnataka, Jindal said, "There are various opportunities we are looking at across the country, but we cannot name any specific project. We have a good balance sheet and we are open to any such acquisitions," adding that the company is also open to opportunities in global markets.

Responding to a query if the company plans to take up ultra mega power projects (UMPPs), he said, "We want to have a diversified portfolio in various states and not concentrate on one state. However, we will participate in coal auction, since we currently depend more on imported fuel".

The company, which is primarily engaged only in generation, is keenly evaluating opportunities in the distribution space, he said.
"To be a fully integrated player in the power sector, we are keenly evaluating opportunities in the distribution space. We think there is a need to open up the power distribution segment as well to make the sector more efficient and transparent. So, as and when the sector is opened up, we will also look at expanding in that segment," Jindal said.

Meanwhile, the company announced today that it has posted a 51.9 per cent increase in consolidated net profit for the quarter ended June 30 at Rs 325.47 crore. JSW Energy reported a net profit of Rs 214.26 crore in the corresponding quarter last fiscal.
The company's total income grew by 3.49 per cent to Rs 2,558.32 crore in the first quarter against Rs 2,471.96 crore in Q1 FY14.