JSW Energy to invest Rs40,000 crore in 8000 MW power projects
04 Jan 2010
JSW Energy, whose Rs2,690 crore ($581 million) initial public offer opened for trading on Monady, has projected investment of Rs40,000 crore in developing power projects of 8,000 MW. The company's IPO opened at Rs102.55, at a slight premium to its offer price of Rs100 a share.
The stock, however, traded in a narrow range of Rs99.90 and Rs106.40, with about 35.11 million shares changing hands on the Bombay Stock Exchange. It closed trading up nearly 0.8 at Rs100.75.
According to MD Sajjan Jindal, the company has 8,000 MW projects in the pipeline, and money would be needed to fund that. The investment needed for the implementation of the projects would be close to Rs40,000 crore, he said, without specifying the investment duration.
The company is implementing projects worth 3200 MW in Maharashtra, 1320 MW in Chhatisgarh and 1600 in West Bengal and has plans to emerge as an over 11000 MW company by 2015.
Jindal said the company, which raised about Rs2,700 crore through an initial public offer held last month, would utilise the proceeds to fund expansion, repay debt and for general corporate purposes.
JSW Energy, with an installed capacity of 995 MW, is also implementing an 860 MW project in Vijaynagar (Karnataka) and 130 MW plant in Barmer (Rajasthan). The company has 2,790 MW capacity projects under construction and implementation stage.
According to Jindal, the company will commission about 2100 MW by December 2010. This would include its 1200 MW plant in Ratnagiri, Maharashtra.
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