Jindal Power files draft prospectus to raise Rs 7200 crore

The Jindal Power's issue proceeds to part finance the construction and development of various thermal power projects, besides for general corporate purpose.

Jindal Power today said it has filed a draft prospectus with market regulator Securities and Exchange Board of India (SEBI) to raise Rs 7,200 crore through its maiden public issue.

Jindal Power, which has set up the country's first mega power project, the 1,000 mega watt (MW) O P Jindal Super Thermal Power Plant at Raigarh in Chhattisgarh, is a subsidiary of Jindal Steel and Power (JSPL).

The company would utilise the issue proceeds to part finance the construction and development of various thermal power projects, besides for general corporate purpose.

Earlier this month the board of JSPL had decided to go for Jindal Power's initial public offer (IPO) for raising up to Rs 10,000 crore.

JSPL is part of the $ 12 billion (over Rs 60,000 crore) steel-to-energy conglomerate O P Jindal Group, led by Naveen Jindal

Jindal Power has invested around Rs 4,500 crore for setting up the Raigarh plant, which was commissioned in record time of less than one year.

JPL is also expanding the capacity of its existing power plant at Tamnar, Uttar Pradesh by setting up a 2400 MW super thermal power plant at an estimated cost of $ 2.40 billion (Rs 12,000 crore).