Rakesh Jhunjhunwala-backed John Energy files papers for Rs350 crore IPO

In 2016-17, John Energy reported a consolidated revenue of Rs582 crore, compared to Rs565 crore the previous year.

New Delhi: John Energy, backed by ace investor Rakesh Jhunjhunwala, has filed draft papers with markets regulator Sebi to raise an estimated Rs350 crore through an initial public offering (IPO).

The IPO comprises fresh issuance of shares worth Rs218 crore and an offer-for-sale of up to 16,77,744 scrips by the existing shareholders, including IL&FS Financial Services and India Rig Company, the draft red herring prospectus (DRHP) filed with Sebi showed.

Proceeds of the issue will be utilised towards repayment of certain borrowing availed by the company and for other general corporate purposes.

According to the merchant banking officials, the IPO is expected to fetch about Rs350 crore.

Established in 1987, John Energy is a leading Indian company catering to the upstream and mid stream oil and gas industry.

Jhunjhunwala has 18.21% stake in the company, while ICICI Bank owns 4.47% holding in the firm.

IDFC and Keynote Corporate Service will manage the company’s public issue.

The equity shares are proposed to be listed on the BSE and the National Stock Exchange (NSE).

In 2016-17, John Energy reported a consolidated revenue of Rs582 crore, compared to Rs565 crore the previous year. Besides, the firm posted a profit after tax of over Rs71 crore in 2016-17 against Rs29 crore in the preceding fiscal.