The 3 big IPOs this week

Disclaimer: Information presented on this site is a guide only. It may not necessarily be correct and is not intended to be taken as financial advice nor has it been prepared with regard to the individual investment needs and objectives or financial situation of any particular person. Stock quotes are believed to be accurate and correctly dated, but does not warrant or guarantee their accuracy or date.
Our site takes no responsibility for any investment decisions based on recommendations provided on website.

The listing of three big initial public offers (IPOs) — JSW Energy, D B Corp and Godrej Property in this first week of Jan 2010.

In the past, some of the big IPOs, including state-run hydro power producer NHPC, Adani Power, DEN Networks and Indiabulls Power, among others had witnessed poor listing.

While JSW Energy would list on Monday, Godrej Property will list on Tuesday and D B Corp on Wednesday.

“If all the three IPOs witness fairly good listing, there would be some revival in the IPO market. While D B Corp is likely to fair well, most market players have their reservations about the other two IPOs,” said a managing director of a Mumbai-based brokerage house.

The Rs 2,700-crore IPO of JSW Energy, part of the Sajjan Jindal-led JSW Group, had fixed an issue price of Rs 100 a piece, the lower end of the price band, for institutional investors whereas the issue price for retail investors was set at Rs 95, a discount of Rs 5. The price band of the issue was between Rs 100 and Rs 115.

Godrej Property, which raised nearly Rs 500 crore, had fixed the issue price at Rs 490 per share, at the lower end of the price band of Rs 490-530. The retail and high net worth portion of IPOs by JSW Energy and Godrej Properties was under-subscribed.

However, D B Corp, the publisher of Dainik Bhaskar which raised Rs 385 crore, had fixed the issue price for non retail investors at Rs 212, at the upper end of the price band. For retail investors, the price band was set at a discount of Rs 2 at Rs 210. DB Corp, which was subscribed nearly 40 times, was the highest subscribed IPO of 2009.

The portion for retail investors, which in some recent IPOs was under-subscribed, was subscribed nearly three times in the D B Corp IPO. The price band of the issue was between Rs 185 to Rs 212.

Important IPO’s listed in the year 2009 and their current trading price,

Company                    Issue price (Rs)          Current price (Rs)
Adani Power                     100                               99.10
NHPC                                35                               34.05
DEN Networks                  195                              195.65
Indiabulls Power                 45                                34.75