The public issue of JSW Energy (JSWE) for Rs2700 crore was opened on 07 Dec, 2009 and successfully closed on 09 Dec, 2009. The price band is fixed between Rs 110 and Rs 115 per equity share.
IPO Listing Detail’s :
Listing Date: 4th January 2010, (Monday)
NSE Symbol: JSWENERGY
ISIN: INE121E01018
Face Value: Rs. 10 Per Equity Share
Issue Price: Rs. 100 Per Equity Share (Rs 95 for Retail)
The equity shares are proposed to be listed on Bombay Stock Exchange Limited and the National Stock Exchange of India Limited. The book-running lead managers included JM Financial Consultants, Kotak Mahindra, ICICI Securities, IDFC-SSKI, JP Morgan, SBI Capital, Morgan Stanley and IDBI Capital.
JSW Energy IPO may not see huge listing gains:
"JSWE has good track record with its 260MW operational power plant. In H1FY2010, JSWE commissioned two more plants and this is reflected in the strong growth of H1FY2010 numbers, when the sales were up by 42% and the profit after tax (PAT) went up by 98%. In FY2008, the PAT is reinstated at Rs 324 crore mainly on account of sale of CERs of Rs327.6 crore, which pertained to 2001-2006 period", says Sharekhan.
The report also says, "JSWE scores above the recent deluge of power IPOs on account of its operational 995MW capacity. Moreover, the company has also reached financial closures for most of its projects (worth 2,145MW). The company has also indicated that anything related to power such as power trading, transmission and distribution, mining and equipment manufacturing comes under its operations—and all of these hold great promise. Its ambitious plan to take its total power generation capacity to 11,390MW by 2015 also looks attainable, looking at its arrangements in place. However, we believe that for all the power generation companies, project execution and its smooth operation thereafter will be key challenge going forward. Further, the future earnings of these companies are highly sensitive to their ability to complete projects on time with all the remaining factors — coal linkages, procurement of equipments and power purchasing agreements—in place. And JSWE is no exception to this."
"While comparing with other power utilities, JSWE (post issue) looks fairly priced both in terms of price/book (P/B) as well as market cap/MW basis. However, JSWE is having clear revenue visibility at least from the 995-MW operational capacity. Also, another 2,280MW capacity coming up within 18 months would provide further boost to its near future revenue stream. We believe, although listing gains may not be huge looking at reasonably priced offer price, the expected commissioning of power plants within two years provides JSWE a better revenue visibility vis-à-vis its peers", says Sharekhan.
Report by Sharekhan
Courtsey moneycontrol.com
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