Indian power producer files for IPO

Following the IPOs of two other Indian power companies NHPC and Adani Power, JSW Energy aims to raise INR30bn from its maiden issue.

JSW Energy has filed an application with the Securities and Exchange Board of India for an initial public offering (IPO).

If the application is approved, JSW Energy would join power companies Adani Power and NHPC, which have successfully raised a combined INR90 billion ($1.8 billion; €1.3 billion) from their maiden IPOs in the last two weeks.

JSW Energy is aiming to raise about INR30 billion from the issue. The capital would be used to partly finance projects in Maharashtra, Rajasthan and Himachal Pradesh as well as mining ventures, repay the company’s debt and for general working purposes.

The company may consider the participation of anchor investors, according to a statement. About 60 percent of the issue will be allocated to qualified institutional buyers, 30 percent to retail investors and the remaining 10 percent to high net worth individuals, it said. 

Companies in India’s power sector, which have raised equity from the capital markets recently, have met with strong responses. Hydropower company NHPC’s IPO last week was over-subscribed 23.74 times while power company Adani Power’s IPO earlier this month was over-subscribed 21.64 times.

Set up in 1994, JSW Energy is a subsidiary of Jindal South West Group, which is part of the $10 billion Jindal Organisation, an Indian conglomerate with interests in steel, energy, infrastructure and logistics and information technology. 
JSW did not respond to requests for comment at press time.