Jindal Power IPO Review

 

Jindal Power IPO Review

Jindal Power is a subsidiary company of Jindal Steel & Power Ltd (JSPL). JPL has set up India’s first mega power project in the private sector at Raigarh, Chhattisgarh. The Company has invested approximately Rs. 4338 crore for setting up a 1000 MW power plant, the 1st unit of which commenced commercial operation in December 2007. All four units (250 MW each) were commissioned within a span of nine months.

Jindal Power is planning to launch its IPO by March 2011 and planning to raise Rs.7000 crores by this initial public offering. the proceed of public offer would be utilised to part fund its around Rs 22,000-crore expansion projects in Chhattisgarh and Jharkhand.

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

The company has still not filed its reed herring prospectus and the price band is not yet declared. However, the company is really fundamentally strong company and one can invest in this company for the long time horizon (More than 5 years).