JSW Energy IPO Registered on Day 1 of Issue Opening – JSW Energy IPO (Initial Public Offering), a part of JSW Group headed by Sajjan Jindal, has been entirely registered on the day first of issue opening. The price band of IPO has been between Rs. 110 to Rs. 115 and issue will close on December 9, 2009.
The issue is of Rs. 2,700 crore. A discount offer of Rs. 5 to the issue price decided pursuant to finishing of the book building process will be proffered to retail individual bidders. In addition, Moneycontrol has carried a poll on whether to employ the issue or not.
The Investment Advisor Mr. SP Tulsian proposed applying at upper band while according to other experts as well as brokerages, the issue was highly priced. Mr. Tulsian stated that one could enforce in the issue even at the upper band of Rs. 115 for investment gains as well as listings. He also told, “The interesting part of the company is that, it is already a profit making with sizeable presence in the sector. For the six-months ending September 09, the total income of the company was at Rs 875 crore with PAT of Rs 267 crore.”
“Looking to the aggression and execution capability, which has been exhibited by the group in JSW Steel, the present progress of the power projects of the company, it has good prospects of growing faster than its peers in the energy sector, as an integrated player. Even now, the financials of the company are better placed with its peers. Adani Power, presently has an EV of Rs 7.20 crore/MW with total capacity to become operational by March 12. However, the company has an EV of close to Rs 7.20 crore/MW by netting off investments and other related power business, as also considering cash flow from early commencement of 2,145 MW by October 2010.”
“Considering all these, issue looks good even at the upper band of Rs 115 per share. It is likely that this issue will not disappoint, as happened with earlier 3 energy IPOs, of Adani Power, NHPC and Indiabulls Power. As such O.P. Jindal Group has remained investors friendly and have rewarded the investors well, over last 25 years. One can apply in the issue even at the upper band of Rs 115 for listing as well as investment gains.”
As per Manisha Bhatt of Prabhudas Lilladher, one could register to the issue at even lower end of price band at Rs. 100. Besides all this, Amit Nalin Securities spokesperson Mr. Amit Dalal commenced, he was wary of merchant pricing and power in case of JSW Energy. He said, “I am a little wary of JSW Energy, mainly because I am very wary of merchant pricing and power. I don’t believe merchant pricing in power can remain so expensive for the country at large and finally it will settle at lower levels. Today we are discounting uptrend in a very aggressive manner when we price these utilities including JSW, so that is my concern with JSW.”
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