Power producer JSW Energy is planning to raise up to Rs 12,500 crore through issuance of various securities as it eyes organic and inorganic ways to expand business.
The firm, part of USD 11 billion Sajjan Jindal led-JSW Group, will seek shareholders' approval next month for raising up to Rs 5,000 crore for ongoing capital expenditure and another Rs 7,500 crore to pursue "organic and inorganic growth opportunities", among others.
To augment long term resources for financing ongoing capital expenditure and for general corporate purposes, among others, JSW Energy "may offer or invite subscription to secured/unsecured redeemable non-convertible debentures on private placement basis".
As per the notice sent to shareholders for the annual general meeting, scheduled to be held on July 22, the company said it is seeking approval for an enabling resolution to borrow funds by offer or through secured/unsecured redeemable non-convertible debentures for up to Rs 5,000 crore. The resolution, once approved, would be valid for 2015-2016 fiscal.
Further, JSW Energy would seek shareholders' nod to allow its board to issue and allot shares, GDRs, ADRs, Foreign Currency Convertible Bonds (FCCBs), convertible debentures, non-convertible debentures and such other securities for raising up to Rs 7,500 crore.
"The proposed resolution supersedes the special resolution passed on March 3, 2015 with regard to this matter and enables board to issue securities for an aggregate amount not exceeding Rs 7,500 crore or its equivalent in any foreign currency," the notice said.
In March this year, shareholders' had approved mopping up of Rs 5,000 crore through issue of securities. The board shall issue securities pursuant to approval of the "special resolution" to meet long term working capital and capital expenditure requirements of the company and its subsidiaries, joint ventures and affiliates, the notice said.
This would also be an enabling resolution. "Company is in the midst of pursuing various opportunities including organic and inorganic growth opportunities and the board believes it is necessary to raise funds through issue of these securities," JSW Energy said. As per its website, the firm has installed power generation capacity of 3,140 MW, while 8,630 MW capacity is under implementation and development.
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