JSW Energy gets SEBI nod for public issue

JSW Energy, a part of Jindal South West (JSW) group headed by Sajjan Jindal, has received SEBI (Securities & Exchange Board of India) nod for IPO (initial public offering).

The company is looking to raise a minimum of Rs 2,600 crore by issuing 63.22 million equity shares. IPO proceeds will be used for repayment of debt and equity financing of power projects. It is planning six power projects aggregating to 2790 MW in Rajasthan, Maharashtra and Himachal Pradesh.

Total promoters' holding stands at 64.52 per cent, Sajjan Jindal owns 5.46 per cent stake; JSW Investments owns 39.24 per cent and Sun Investments owns 19.82 per cent stake.

The consolidated net profit of the company has declined by 15 per cent to Rs 276 crore (Rs 324 crore) during the financial year 2008-09, according to draft hearing prospectus filed by the company. While, total income from operations has increased by 40 per cent to Rs 1,852 crore (Rs 1,326 crore) during the fiscal.

Meanwhile, all three power companies - NHPC (Rs 6,039 crore), Adani Power (Rs 3,017 crore) and Indiabulls Power (Rs 1,758 crore) which collectively raised Rs 10,814 crore through IPO’s are currently trading below their issue price.

Indiabulls Power trading at Rs 34.30, 24 per cent below its offer price of Rs 45 on BSE.  NHPC trading 10 per cent below at Rs 32.40 against its issue price of Rs 36 and Adani Power trading at Rs 94 against its offer price of Rs 100 on BSE.