Jindal Power IPO : Likely to hit the market in April 2011

by khalid on 18/01/2011 · 0 comments

Jindal Power Limited (JPL) is planning to raise Rs 7,000 crore with its initial public offering (IPO) which is set to hit the market by April this year. Company Chairman Mr Navin Jindal is hoping to float the IPO by the end of March or mid-April. The company have necessary clearances and the IPO will depend on the market conditions. The issue would be for a minimum of 10% equity.

The proceeds of the IPO are proposed to be utilized to partially fund the Rs 22,000 crore expansion projects of the company in Chhattisgarh and Jharkhand.

Jindal Power Limited (JPL) will provide 35% of the power produced from its Chhattisgarh project to the Chhattisgarh State Electricity Board (CSEB) and sell the rest through short, medium and long-term agreements. Also on the anvil are two captive power projects, of 660 MW at Godda and 1,320 MW at Dumka in Jharkhand, which the company hopes to execute by 2014.

Jindal Power would also construct power plants in Jharkhand and Arunachal Pradesh under the Memoranda of Understanding with the governments of the respective states for the 4,000 Mw of hydel projects at Etalin and 500 Mw at Attunli in co-operation with Hydro Power Development Corporation of Arunachal Pradesh Ltd.

Stay tuned to BelltheBull Blog for more news on Jindal Power Limited (JPL) IPO !

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