Jindal Power IPO might hit the markets in 2012

Posted By: Religare
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Jindal Power IPO might hit the markets in 2012
The much awaited Rs.7,200 crore IPO of Jindal Power may get further delayed owing to poor market conditions. The IPO which was set to launch in March 2011 has been continuously postponed by company directors and are not expecting to launch it in next 4- 5 months from now.

Commenting over the status of IPO, Deputy Managing Director, Sushil Maroo said that, the IPO might not be in markets for another 4-5 months and Draft Red Herring Prospectus (DRHP) has not been filed yet with the market regulators.

The forthcoming IPO has been in line with the expansion plans of Jindal Power, as the company is developing a 6,500 MW of coal-based power projects. It is also developing 6,100 MW of hydroelectric power projects. JPL has announced further brownfield expansion of 2400 MW (4x600 MW) Power Plant at an estimated project cost of Rs. 13,410 Cr.the project would be funded through 75:25 debt:equity.

The company is also looking to fund its Chhattisgarh and Jharkhand power projects, with combined capacity of 4,380 MW, with the money worth around Rs.22,000 crore. The company will also execute two captive power projects of 660 MW at Godda and 1,320 MW at Dumka, in Jharkhand, by 2014.

The company plans to invest Rs 40,000 crore in Orissa to produce 12.5 million tonnes per annum of steel in phases and generate 2,500 MW power over the next decade.

Currently, Jindal Power has a 1,000-Mw integrated power project (IPP) in operation which reported net sales of Rs.3,337.73 crore in FY11. Net profits after tax for the FY11 stood at Rs.2,001.60 crore down from Rs.2,318.76 crore in FY10.

Jindal Power IPO would be hitting the markets in the next year as markets are expected to remain volatile amid ongoing crisis in US and Europe with most of the stocks tumbling to hit bottoming prices.

Read more about: ipo, invest, crisis, europe, jindal power
Story first published: Monday, September 5, 2011, 9:30 [IST]
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