- Issue Price: Rs. 100 - Rs. 115 Per Equity Share
- Discount to Retail Investors: Rs. 5 /share to issue price
- Issue Open: Dec 07, 2009 - Dec 09, 2009
- Issue Size: Rs. 2,700.00 Crore
- Face Value: Rs. 10 Per Equity Share
- Lot and Minimum Order Quantity: 60 Shares
About the Company
The company has been in the business of power generation since 2000 and its consolidated revenue increased from Rs1,326 crore in FY2008 to Rs1,852 crore in FY2009. The
company is also involved in power transmission and plans to foray into power distribution space.
Objective of the Issue
To part-finance the construction and development of the Identified Projects aggregating to 2,790 MW in capacity; 400 KV transmission project and a mining venture.
IPO Grade
CARE: 4/5 (Above Average Fundamentals)
Current/Existing Operations
The company has 995 MW of operational power generation.
Quantitative Factors
EPS: (Standalone 2009) 4.22
EPS: (Consolidated 2009) 2.04
Valuation View
The IPO is not cheap. It is expensive. The difference here, in this Energy IPO is that the company is operational. But at an EPS of 4.22, the P/E of Price Band is more than 25, and this more than doubles if you consider the consolidated EPS. The Jindals have presumptuously priced in a premium for and operational Energy company (going for an IPO) with large expansion plans. So, the higher pricing is for this aspect of difference in terms of operationality and transparency.
Download: Red Herring Prospectus
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