Going to market

SW Energy of the Jindal group,which has set a price band of Rs 100-115 a share for its initial public offering...

JSW Energy offers discount to rope in retail investors

MUMBAI: SW Energy of the Jindal group,which has set a price band of Rs 100-115 a share for its initial public offering IPO to raise up to Rs 2,700 crore 585 million,has offered a Rs 5 per share discount to retail investors in the IPO. Retail investors,who are allotted 30 per cent of IPOs,have shown less enthusiasm than institutions in recent listings,and JSW Energys move is seen as a tactic to get more retail investor interest in the IPO which will open on December 7. The company,which last year aborted an up to 1 billion IPO,joins a rush of firms looking to raise equity after the stock market rally since March.

It would be the fourth IPO from a power producer in India this year,following offerings from state-run NHPC and private-sector utilities Adani Power and Indiabulls Power. Pramod Menon,chief financial officer of the company,said,We will offer 18 per cent stake worth Rs 486 crore to the anchor investors. The proposed amount will include overseas as well as Indian investors. The equity dilution after the IPO would be in the range of 14.77 per cent to 16.64 per cent.

The companys market value after the IPO could be as much as 4 billion based on the price range. NTPC is valued at 37.3 billion,while leading private sector utility Tata Power is worth 6.9 billion. Adani Power,NHPC and energy firms Oil India and Indiabulls Power have together raised about 2.8 billion this year. Even though these offerings were strongly subscribed,most made weak market debuts,with analysts blaming high valuations. Other expected power firm IPOs include a 1.1 billion offer from Sterlite Energy,part of the Vedanta group,and an 850 million offer from Jindal Power,a unit of Jindal Steel amp; Power Ltd. ENS

Reliance Media World to list on bourses today

MUMBAI: Anil Ambani-led Reliance Media World will be listed on the National Stock Exchange and the Bombay Stock Exchange on December 4,said a company statement here. We are listing to unlock shareholder value. The radio platform provides a huge opportunity and we want our shareholders to benefit, Reliance Media Worlds chief executive officer Tarun Katial said. The company FM network BIG 92.7 FM along with its allied businesses of BIG Street,the business of out of home media and BIG Digital,an initiative in the digital space.

The radio division of Reliance MediaWorks Limited has been demerged into Reliance Media World pursuant to tthe scheme of arrangement sanctioned by the Bombay High Court. The shareholders of Reliance MediaWorks have already been allotted one equity share of Reliance Media World for every one equity share held. The promoter groups shareholding is at 61.47 per cent. ENS

Godrej Properties IPO to open on December 9

New Delhi: Godrej Properties Ltd on Thursday said it will hit the capital market with its proposed initial public offer IPO on December 9 and close on December 11. The real estate company is planning to enter the primary market with an issue size of 94.29 lakh equity shares and the initial public offer will constitute 13.5 per cent of the post issue paid up capital of the company.

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The face value of each equity share is Rs 10 each. The price band and minimum bid lot will be decided by the company in consultation with the global coordinators and book running lead managers, the company said in a public announcement. The realty firm is promoted by Godrej Industries Ltd and Godrej amp; Boyce Manufacturing Company Ltd. It has not disclosed how much fund it plans to raise from the IPO. PTI