“The memories of recent power IPO listing debacle is still fresh in the mind of investors. It was mainly IPO financing based demand as only institutional investors are participating who mainly brings in borrowed money,” SMC Capitals Equity Head Jagannadham Thunuguntla said.

1. JSW Energy IPO receives tepid response
Agencies
Posted: Dec 09, 2009 at 1950 hrs IST
Mumbai The Rs 2,700-crore initial public offering of JSW Energy got subscribed a modest 1.67
times on the final day of issue today, reflecting muted investor sentiment amid poor
performance by other power sector majors in the bourses.
The IPO of JSW Energy received bids for over 38 crore shares, against 22.76 crore shares on
offer, garnering a demand of 1.67 times the shares on offer, as per data available on the
National Stock Exchange.
Analysts said the weak response of retail investors in the issue shows that investors prefer to
stay away from the power sector.
“The memories of recent power IPO listing debacle is still fresh in the mind of investors. It was
mainly IPO financing based demand as only institutional investors are participating who mainly
brings in borrowed money,” SMC Capitals Equity Head Jagannadham Thunuguntla said.
The portion reserved for qualified institutional buyers got subscribed 2.88 times, while the high
networth individuals bid for 0.74 per cent of the shares on offer. Retail investors portion
remained got subscribed 0.17 per cent.
“Most of the power sector stocks are trading about 20-30 per cent below issue price. JSW Enery
is likely to witness lukewarm debut on the bourses on the day of listing as the actual price
discovery is yet to happen,” Thunuguntla added.