Jindal Power Ltd IPO launch can be expected around October

The much-awaited initial public offer of Navin Jindal-led Jindal Power Ltd, which is expected to rake in up to Rs 7,000 crore, may hit the capital market around October this year, a source close to the development said.

"Jindal Power would file the DRHP (Draft Red Herring Prospectus) soon and IPO can be expected around October-November," he told PTI, without divulging the timeline for filing the DRHP.

Jindal Power was earlier expected to launch its IPO around March, 2011, but the stake sale got delayed as the company felt the market conditions were not conducive.

The proceeds from the public offer will be utilised to part-fund JPL's expansion projects in Chattisgarh and Jharkhand, worth around Rs 22,000 crore.

Jindal Power will channelise 35% of the power produced from the Chhattisgarh expansion project to the Chhattisgarh State Electricity Board (CSEB) and sell the rest through short, medium and long-term agreements.

The company will also execute two captive power projects of 660 MW at Godda and 1,320 MW at Dumka, in Jharkhand, by 2014.

Meanwhile, another group firm, Jindal Steel and Power, will commission the first phase of its steel plant at Angul, in Orissa, by the end of this year. A total capacity of 3 million tonnes per annum will be commissioned under the first phase of the project, which is targeted at establishing 6 million tonnes per annum of steel capacity.

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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.

Last year, then Minister of Environment and Forests Jairam Ramesh had asked the company to stop work at its 6 million tonnes per annum steel mill and 1,000-MW power plant in Angul, Orissa, over alleged violation of forest norms.