JSW Energy Prices Initial Offer at Lowest End of Band (Update1)
Dec. 15 (Bloomberg) -- JSW Energy Ltd., a unit of India’s third-largest steelmaker, will sell shares at the lowest end of a price band after its initial stock sale received the weakest response among rival power company offerings.
Investors will be offered shares at 100 rupees each, Chief Financial Officer Pramod Menon said in a telephone interview. Retail investors will get a discount of five rupees a share, while anchor investors, which placed their bids before the sale opened, will have to pay 110 rupees apiece, he said.
JSW Energy, which sought 100 rupees to 115 rupees a share, received bids for 1.67 times the stock offered, the lowest among Indian power utilities tapping investors for the first time this year. Indiabulls Power Ltd. got bids for 22 times, while Adani Power Ltd. received bids for 18 times and NHPC Ltd. for 24 times. Shares of the three utilities are trading below their IPO price in a market set for its best performance in 18 years.
“JSW Energy’s pricing looks much more sensible now,” said Bhargav Buddhadev, an analyst with Mumbai-based brokerage Noble Group. “Our valuation for the company was around 90 rupees a share and it may be a good bet to enter the stock if it sees a correction of around 10 percent after listing.”
‘Have Right’
JSW Energy sold 42.3 million shares to seven anchor investors including Eton Park International LLP, Credit Suisse Singapore Ltd. and Deutsche Securities Mauritius Ltd. at 110 rupees apiece, raising 4.7 billion rupees, the company said in an e-mailed statement on Dec. 4.
“We have the right to sell the shares at any price in the band,” Menon said. “We decided on the price after looking at all aspects. You have to respect the response of investors.” The company has yet to decide on the trading date, he said.
Adani Power, controlled by billionaire Gautam Adani, was trading at 96.65 rupees at 12:43 p.m. in Mumbai, down 3.4 percent since its IPO in August, according to data on the Bloomberg. NHPC Ltd., India’s biggest hydroelectric power producer, has fallen 7.8 percent since its September IPO and Indiabulls Power, part-owned by billionaire Lakshmi Mittal, has declined 26 percent since October.
IN JAIPUR AND RAJKOT, IT IS RUMOUR THAT IT WILL LIST AROUND 145/- AND IT MAY EVEN TOUCH 160/- ON DAY OF LISTING. LOT OF PEOPLES ARE BUYING IN GREY MARKET AROUND 125/-.
On listing day it self it will touch Rs. 159/-. Because, there is no any seller in market as no one apply in the IPO. Hence, they will buy, buy and only buy on listing day. In one year it will reach 200/- as strong fundamentals of this company.
But it low pe pharma shares at rs 2 only . Long term target rs 10.Brockrage house advising for buy it for long term and short term.some positive announcement from company is expected.
THIS WILL DEFINITELY LIST AROUND 135/- - 138/-. THIS CAN BE PURCHASED AT THIS RATE ALSO. BECAUSE IN LESS THAN I YEAR IT MAY ACHIEVE THE TARGET OF RS. 200/-.