JSW Energy IPO oversubscribed

Gets bids for 28.40 crore shares

The initial public offer (IPO) of JSW Energy was subscribed by 1.25 times by 16:00 IST on the first day of the issue, data on NSE showed. The IPO received bids for 28.40 crore shares as against 22.75 crore shares on offer.

JSW Energy, a wholly-owned subsidiary of the JSW Group, has set the price-band for the IPO at between Rs 100 and Rs 115 per share. The issue closes on 9 December 2009.

JSW Energy has decided to issue a total of 4.22 crore shares to 7 anchor investors. Anchor investors are the first set of investors who provide subsequent investors a degree of confidence.

The company has also offered a Rs 5 per share discount to retail investors in the IPO.

The IPO has been graded by rating agency CARE as Grade 4, indicating above-average fundamentals.

Proceeds from the IPO would be used for developing the group's proposed power generation and transmission projects, mining projects and debt repayment.

JSW Energy has a generating capacity of 995 megawatt (MW) and plans to raise it to 3,140 MW by October 2010. The Group's flagship company, JSW Steel, will consume 300 MW once the new capacities come online.

Some of the IPO proceeds would also be used to part-fund its transmission project at Ratnagiri for which a 74:26 joint venture was formed with the Maharashtra State Transmission Company in August 2008.