JSW Energy plans to raise Rs12,500 crore for capex, expansion

New Delhi: Power producer JSW Energy Ltd is planning to raise up to `12,500 crore through issuance of various securities as it eyes organic and inorganic ways to expand business. The firm, part of $11 billion Sajjan Jindal led-JSW Group, will seek shareholders’ approval next month for raising up to `5,000 crore for ongoing capital expenditure and another `7,500 crore to pursue “organic and inorganic growth opportunities”, among others.
To augment long term resources for financing ongoing capital expenditure and for general corporate purposes, among others, JSW Energy “may offer or invite subscription to secured/unsecured redeemable non-convertible debentures on private placement basis”. As per the notice sent to shareholders for the annual general meeting, scheduled to be held on 22 July, the company said it is seeking approval for an enabling resolution to borrow funds by offer or through secured/unsecured redeemable non-convertible debentures for up to `5,000 crore. The resolution, once approved, would be valid for 2015-2016 fiscal.
Further, JSW Energy would seek shareholders’ nod to allow its board to issue and allot shares, global depositary receipts (GDRs), american depositary receipts (ADRs), foreign currency convertible bonds (FCCBs), convertible debentures, non-convertible debentures and such other securities for raising up to `7,500 crore.
“The proposed resolution supersedes the special resolution passed on 3 March 2015 with regard to this matter and enables board to issue securities for an aggregate amount not exceeding `7,500 crore or its equivalent in any foreign currency,” the notice said.
In March this year, shareholders’ had approved mopping up of `5,000 crore through issue of securities. The board shall issue securities pursuant to approval of the “special resolution” to meet long term working capital and capital expenditure requirements of the company and its subsidiaries, joint ventures and affiliates, the notice said. This would also be an enabling resolution.
“Company is in the midst of pursuing various opportunities including organic and inorganic growth opportunities and the board believes it is necessary to raise funds through issue of these securities,” JSW Energy said. As per its website, the firm has installed power generation capacity of 3,140 MW, while 8,630 MW capacity is under implementation and development.
Source: Mint; 01 July 2015

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