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Jaypee Infratech & SJVN IPOs remain undersubscribed on day 2

This article was posted on May 2, 2010 and is filed under Market News

The initial public offerings of Jaypee Infratech and state-run power producer Satluj Jal Vidyut Nigam (SJVN) remained undersubscribed on Day 2. They have been subscribed 87% and 86% so far, as per the data available on the Nseindia.com

Jaypee Infratech’s IPO, which closes on May 4 has received bids for 19.35 crore equities as against issue size of 22.17 crore shares and majority of bids have been received at lower end of price band of Rs 102 to Rs 117 per share.

Qualified institutional buyers (QIBs) were quite supportive to the issue till now; their reserved portion subscribed 1.5 times while NIIs and retail investors’ portion still undersubscribed.

Through this public issue, the company hopes to raise Rs 2,262 core and Rs 2,352 crore as per the lower and the upper end of the price band, respectively. Jaypee Infratech will receive Rs 1,650 crore out of the total proceeds and the balance will go to the holding company — JP Associates Ltd (JAL). A discount of five per cent per share would be offered to retail investors.

The Rs 1,000-crore initial public offer of state-run power producer SJVN will close on May 3. The issue has received bids for 35.82 crore shares against 41.5 crore equities on offer.

Major bids have been seen at Rs 23 per share – at lower end of price band of Rs 23-26. At the upper end of price band, the issue is valued worth Rs 1,079 crore. This IPO also helped by QIBs to get subscribed 86% so far.

The government is divesting 10% of its 74.5% stake in the company. SJVN is a joint venture between the Centre and the Himachal Pradesh government. The centre holds 74.5% stake and the rest 25.5% is held by the state government.

A discount of five per cent per share would be offered to retail investors as well as SJVNL employees.

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