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Saturday, December 5, 2009

IPO Information - JSW Energy Ltd.

Incorporated in 1994, JSW Energy Limited (JSWEL) is a group company of Jindal South West (JSW) group headed by Mr.Sajjan Jindal. The JSW Group has a presence in the steel, power, cement, software, and infrastructure sectors.

Issue Open: Dec 07, 2009. - Dec 09, 2009.
Price Band: Rs.100 – Rs.115
Minimum Bid Size: 60 Equity shares
Issue Size (Crore): Rs. 2,700 crores
Face Value: Rs 10 Per Equity Share
Issue Type: 100% Book Building
Listing At: BSE, NSE
Minimum Subscription Amount for Retail Investors: Rs. 100000

Other companies in JSW are JSW Steel Ltd, Jindal South West Mining Ltd, JSW Port, Jindal Praxair Oxygen Company Limited (JPOCL) and investment companies. JSWEL is the first Independent Power Producer (IPP) to be set up in the state of Karnataka. The company has set up 2 units of 130 MW each and both units are generating power using Corex gas and coal.

While comparing with other power utilities, JSWE (post issue) looks fairly priced both in terms of price/book (P/B) as well as market cap/MW basis. However, JSWE is having clear revenue visibility at least from the 995-MW operational capacity. Also, another 2,280MW capacity coming up within 18 months would provide further boost to its near future revenue stream.

Although listing gains may not be huge looking at reasonably priced offer price, the expected commissioning of power plants within two years provides JSWE a better revenue visibility vis-à-vis its peers

IPO Grading / Rating
CARE has assigned a 'CARE IPO Grade 4' to the proposed IPO issue of JSW Energy Ltd 'CARE IPO Grade 4' indicates above average fundamentals.

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