As many of us know that it's JSW Group Company and frankly speaking they have track record of making money for the investors. Most of their company stocks have outperformed stock market in 2009. Like, Jindal Steel and Power.
In fact they have given discount of Rs 5 for the stock to retail investors where issue price was fixed at Rs 95 per share.
IPO of JSW Energy was subscribed 1.68 times - taken from NSE Website. There was no hunger in the market for the issue as investors have not made money in other recent power IPO's like Adani Power and NHPC.
Qualified Institutional Investors portion was subscribed 2.88 times but retain and non-institutional investors were not much exited about the issue and their quota was not fully subscribed.
Company is planning to utilize raised amount to various power projects and reduce the debt. Thing which I'm glad about is that company will use some portion in Mining acquisition, which will result in giving competitive advantage to the company in the sector. This model will add up into bottom-line of company. As of now company is having 860 MW power generation capacities. With this IPO money they are planning to raise it 2790 MW.
Listing Price for JSW Steel :Listing Price depends on various conditions like,
- Market opening on Monday. As we all know from Monday Market will open at 9:00 in the morning. So get ready to wake up early
. It's entirely new experience for all of us as our markets are now inline with global markets opening.
- Dow Jones and NASDAQ closed in red on Thursday. So we need to see if global markets are reacting on that.
- I don't see people buying this stock aggressively due to lackluster IPO response, peers are available at bit cheap valuation for now.
- I see listing around Rs 90 - 94 for JSW Energy.
Long term investor should wait for the market correction to get into the stock. One can buy around Rs 85 and hold it for at least 1-2 years.
Happy Investing !!