JSW Energy has raised INR27 billion ($578 million; €390 million) from its initial public offering, which was 1.29 times oversubscribed at press time, according to data from India’s National Stock Exchange.
The issue is priced at between INR100 and INR115 per share and closes this Wednesday, according to the exchange. About 60 percent will be allocated to qualified institutional buyers, of which 30 percent may be allocated to anchor investors, or the first investors to dedicate capital to a company.
JSW: more capital for
Of the remaining 40 percent of the issue, 30 percent will be allocated to retail investors and 10 percent to high net worth individuals, the company said.
About INR21.4 billion of the capital raised will be used to partly finance projects in Maharashtra, Rajasthan and Himachal Pradesh, INR4.7 billion will go towards repaying the company’s debt. The remainder will be used for general purposes.
Indian power companies have met with strong responses when raising equity from public markets recently. In October, power developer Indiabulls Power’s IPO was 22 times oversubscribed, while in August, the IPOs of hydropower company NHPC and power company Adani Power were oversubscribed 23.74 times and 21.64 times, respectively.
JSW netted a profit of about INR5.8 billion for the year ended 31 March. The company currently has an operational generating capacity of 860 megawatts and has 2,790 megawatts of generating capacity in the pipeline.
Founded in 1994, JSW 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.