Jindal Poly eyes $200 m IPO for thermal unit

Jindal Poly Films, a maker of flexible packaging films, is exploring options to raise USD 200 million for thermal power projects by selling a stake in its unit, top executives told Reuters on Thursday.

The company plans to raise about USD 200 million by diluting up to 15% stake in the unit through an initial share sale within a year, Chief Financial Officer Sanjeev Agarwal and Executive Director Samir Banerjee said in a joint interview.

"To part finance the project equity, the company is exploring various possibilities to raise USD 200 million, including through an IPO," said Agarwal.

Of the total project cost of Rs 9,150 crore, the company has tied up Rs 7,200 crore of loans from 22 banks, with Punjab National Bank as the lead banker, he added.

Of the remaining, the promoters will put in about half, he said.

Jindal Poly, which posted a more than 6-fold growth in profit for October to December, is aiming at revenue of USD 1 billion by FY2014, Agarwal said.