JSW Energy IPO Subscribed

The IPO of JSW Energy Limited was subscribed. The support to the issue was on expected lines and the fact that the issue was over-subscribed is indeed commendable looking at the aggressive pricing by the company and its merchant bankers.
The details are as follows:-

Category Shares offered Shares subscribed Subscription
QIB’s 11,96,31,921 34,50,93,480 2.8846
Non institutional  2,69,82,124 40,74,900 0.1510
Retail  8,09,46,371 3,27,04,260 0.4040
Total  22,75,60,416 38,18,72,640 1.6781

Retail investors are to get a discount of Rs 5 per share in this issue. Looking at the response to the IPO there would be tremendous pressure on the company and its merchant bankers in the price to be fixed for the issue. The price band which was Rs 100-115 will now weigh heavily on the company. It appears that the company would now fix a price closer on the lower half of the band and may be in the region of Rs 104 plus/minus a few rupees. This makes the possibility of a price in double digits a possibility for retail investors.

Cox and Kings to list tomorrow

Cox and Kings (India) Limited to list on Friday the 11th of December 2009. The company had launched its IPO between the 18th and 20th of November in a price band of Rs 300-330. The issue had received good response and was oversubscribed 6.31 times. The issue was priced at Rs 330 and at this price the company had raised Rs 610 crs which included Rs 100 crs as an offer for sale by existing investors.

The share is trading at a premium in the grey market and there should be decent returns for shareholders when the share lists tomorrow.

DB Corp IPO Price band announced

DB Corp Limited has announced its price band as Rs 185-212 for its IPO which opens on Friday the 11th of December 2009 and closes on Tuesday the 15th of December 2009. The issue is for a total of 1,81,75000 shares and comprises of a fresh issue of 1,27,25,000 shares and an offer for sale of 54,50,000 shares. The issue size at the lower end of the price band is Rs 336.24 crs and at the higher end of the price band is Rs. 385.31 crs.

The post market capitalization of the company is Rs 3358.02 crs at the lower end of the price band and Rs 3848.11 crs at the higher end of the price band.

More on this company tomorrow, post the companies road show today.

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