JSW Energy, part of the Sajjan Jindal-led JSW group, has filed its DRHP with SEBI on 25/1/08 to enter the capital market with an offer of 6.32 crore equity shares of Rs 10 each, at a price to be decided through the book building process. The issue comprises of a net issue of 6.12 crore equity shares to the public and a reservation of 20 lakh equity shares to the employees of the company . The issue will constitute 10.94% of the post issue paid-up capital of the company.
The company proposes to list the shares an BSE & NSE. The BRLMs to the issue are JM Financial Consultants, Kotak Mahindra Capital and ICICI Securities. The issue is likely to hit the market by April 2008.
The company was incorporated in 1994 with the objective to develop, construct, and operate power plants. The JSW Group has a presence in the steel, power, cement, aluminum, software and infrastructure sectors with revenue in excess of Rs 6,250 crores for the six months ended September 30, 2007. As at Dec 31, 2007, the Group employed more than 7,000 employees. As part of the JSW Group, the company benefits from group synergies, including access to talent, competitive financing terms and access to critical equipment and suppliers. The group plans to invest Rs 12,000 crores in the energy sector in the next three years. The capex is part of the group's Rs 40,000 crore investments across sectors during the period. It will spend half of the total capex in the steel sector and the balance in aluminium, cement and port services. In the steel sector, JSW will add three mtpa to its current capacity of 4 mtpa by 2008. The group company, Southern Iron and Steel, is poised for capacity expansion.
The company currently own and operate a 260 MW power plant in Karnataka and is now on the threshold of expanding the generation capacity by 3,410 MW through construction and implementation of five new imported coal-based power plants, in Karnataka, Maharashtra, Rajasthan and Himachal Pradesh. Each project is planned to be strategically located either near available fuel source, load center or infrastructure facilities. The company intends to sell the power generated by these projects under an optimal combination of long-term and short-term power off take agreements to state-owned utilities and some industrial consumers.
According to the Central Electricity Regulatory Commission (CERC), the company is one of the top five power trading companies in India by volume, for the quarter ended September 30, 2007. The company has tied up for part of its coal requirement with a Chinese company and intends to acquire coal mines in Indonesia and Mozambique to meet the balance requirement. A captive port at Jaigad in Maharashtra for import and transportation of coal is also being proposed. Shanghai Electric corporation has bagged the boiler turbine generator contract for the project.
The company intends to utilize Rs 2,918.65 crore out of the issue proceeds to partially finance construction and development of the identified projects aggregating to 3,410mw in capacity and for repayment of corporate debt and general corporate purposes of Rs 600 crores.
For the year ended March 31, 2007, the company recorded an income of Rs 812.24 crores and a net profit of Rs 319.23 crores as compared to an income of Rs 548.88 crores and net profit of Rs 118.78 crores for the year ended March '06.
For the half year ended September 30, 2007 the company posted an income of Rs 778.76 crores and a net profit of Rs 452.24 crores as compared to an income of Rs 319.57 crores and net profit of Rs 98.13 crores in the corresponding period of the previous year.