Jindal Power Plans Second Biggest IPO

The second biggest initial public offer (IPO) is on its way to hit the Indian market. Jindal Power Ltd (JPL), led by Naveen Jindal is planning to raise up to ` 10,000 crore in the current financial year through IPO, which could well be the second biggest IPO in the history of corporate India. The top position is occupied by Anil Ambani-led Reliance Power that raised ` 11,800 crore through its IPO in January 2008. If JPL can achieve its goal, it would surpass ONGC's IPO worth ` 9,500 crore, issued in the year 2004.

The JPL board announced that the money would be used in its proposed two thermal power projects as well as in two hydel stations. It can be mentioned here that JPL is a subsidiary of Jindal Steel and Power (JSPL) and a part of OP Jindal Group. JPL is currently constructing a 2,4000Mw power plant at a cost of ` 12,000 crore in Chhattisgarh. The site is located very close to its existing Raigarh project. Besides, JPL also signed a MoU with the Jharkhand government to set up a 2,640 Mw plant at a cost of ` 1,3000 crore.

While talking about the proposed JPL IPO, a top JSPL executive announced that the company was in the process of finalizing the amount that would be raised through the IPO. However, it's trying to get the approval from the government to raise up to ` 10,000 crore.

The board of JPL has already approved the amount. However, the number of shares to be sold is yet to be finalized. The issue would be for at least one-tenth of the equity.