JSW Energy which raised money in the capital market last month listed on the bourses today and is trading at Rs 102.50, just 2% above the IPO issue price of Rs 100. Experts on Dalal Street had AVOIDED the issue since the price range during the IPO was Rs 100 to Rs 115 and had the management issued it at the upper band like all others did, then it would have been trading at 10% discount.
JSW Energy came up with a 100% book building; initial public offering (IPO) of equity shares of Rs 10 each in a price band of Rs 100-115 per equity share. The company fixed the issue price of its initial public offer (IPO) at Rs 100 a share, at the lower end of the price band, raising about Rs 2,700 crore. For retail investors the issue price was fixed at Rs 95 a share, offering a discount of Rs 5 to the original issue price. Retal Investors can easily SELL OUT at whatever there is left on the Table.
The company intends to utilize the issue proceeds to partially finance construction and development of the identified projects aggregating 2,790 MW in capacity; 400 KV transmission project and mining venture, and for repayment of corporate debt.