JSW Steel, India’s third largest steelmaker has postponed the initial public offering (IPO) for its power unit due to unstable market condition.

In July, the company had said that its IPO would hit the capital market to raise about Rs 1,000 crore to fund its expansion plans, which includes ramping up its power generation capacity to 3,200 MW.

The company is setting up three greenfield power plants in Karnataka, Maharashtra and Rajasthan and the capital raised through IPO would be used to fund all kinds of expansion activities.

However, the company would take the next decision regarding the IPO on improvement of market conditions.

In a separate announcement, JSW Steel revealed that it has no plans to cut steel production despite fall in steel prices and economic slowdown.

The company’s shares were tumbled over 75% from its 52-week-high of Rs 1390 and presently trading at Rs 248 on BSE.

A leading stock analyst has advised to pick the stock at current level with a long term investment horizon. The company has a robust business model, which may give good returns in coming years.