Saturday, December 5, 2009

JSW Energy....Wonderful IPO coming at cheap rate....

I usaully do not discuss IPO but this perticiular IPO is looking excellent to me and hence I can't resist giving a call on that.....
JSW Energy is already a profit making Co and coming from a very wellknown and well managed gr , O P Jindal Gr....
One should apply for this issue and if do not get allotment in IPO then can buy on listing as well if it is available uptill 50% premium, means at around 165.....on listing.....what more I like is, it is 10 paid up....try to compare valuations of other power co with JSW Energy....

JSW Energy fixes IPO price band at Rs 100-115/sh
Published on Fri, Dec 04, 2009 at 22:10 Updated at Sat, Dec 05, 2009 at 12:16 Source :

JSW Energy, a part of Sajjan Jindal-led JSW Group, has fixed the price band between Rs 100 and Rs 115 per equity share for an initial public offering (IPO) of equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process and aggregating up to Rs 2,700 crore. The issue will open for subscription on December 7, 2009 and close on December 9, 2009.
A discount of Rs 5 to the issue price determined pursuant to completion of the book building process will be offered to retail individual bidders.
The issue has been graded by CARE as CARE IPO Grade 4 indicating above average fundamentals.
It intends to utilise the issue proceeds for partially financing construction and development of the Identified Projects aggregating to 2,790 MW in capacity & 400 KV transmission project and mining venture (at cost of Rs 2,142.53 crore) and repayment of corporate debt (Rs 470 crore).(corporate repayment of loans for the tune of Rs 470 cr....Wow!...profit will be more after the issue...)
For the year ended March 31, 2009, the company has reported profit after tax of Rs 578.09 crore on total income of Rs 1,593.98 crore. For the half year ended September 2009, it has posted profit after tax of Rs 294.62 crore on total income of Rs 926.28 crore.(This is a 30% NPM....Wow!)
At least 60% of the issue will be allocated on a proportionate basis to qualified institutional buyers (QIBs), out of which 5% (excluding Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only. The remainder shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received from them at or above the Issue Price.
If at least 60% of the Issue cannot be allocated to QIBs, then the entire application money will be refunded forthwith. Further, not less than 10% of the Issue will be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 30% of the Issue will be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price.
Incorporated in 1994, JSW Energy is a part of the JSW Group, headed by Mr.
Sajjan Jindal, which is in turn a part of the O.P. Jindal Group. JSW Energy Ltd. is an established energy company with 860 megawatts, or MW, of operational generating capacity and 2,790 MW of generating capacity in the construction or implementation phase, 135 MW of which has been commissioned. In addition, it has power generation projects at an early stage under development with a proposed combined installed capacity of 7,740 MW. It is one of the early entrants in the power trading business. Its goal and strategy is to become a leading full-service integrated power company in the Indian power sector with presence across the value chain.
The book running lead managers to the Issue are JM Financial Consultants Private Limited, Kotak Mahindra Capital Company Limited, ICICI Securities Limited, IDFC-SSKI Limited, J P Morgan India Private Limited, SBI Capital Markets Limited, Morgan Stanley India Company Private Limited and IDBI Capital Market Serviced Limited.


  1. Hi Rajeev,
    JSW energy IPO looks far far better than R-power IPO.
    Thats for sure. But personally I will try to buy it after IPO.
    With Regards,

  2. Dear Rajeev,

    I hold Sharon Bio 1000nos. Bought at Rs.41 average price. Now its trading around 78. I bought it thinking its a multibagger in the long term. I am not able to get any useful information about the current progress of the company in the internet. Can you please share your views on this stock with a 2 year perspective.


  3. Rajeev bhai,

    I wanted to post this as a new post but donot know how.

    I took this from my website

    I have made a portfolio with most of the stocks that you have recomended recently.Though this list is not 100% accurate i am sure it will show the other readers what kind of returns one made by following you.


    Company Watch Start Date Watch Start Price Current Date Current Price Return%

    Madhucon Projects Ltd 23-03-2009 25 5/12/2009 172.5
    TRF Ltd 20-04-2009 125 5/12/2009 635.65 408.51
    Marg Ltd 21-04-2009 65.6 5/12/2009 201.65 207.39
    Sabero Organics Gujarat Ltd 8/6/2009 22.5 5/12/2009 64.2 185.33
    Premier Explosives Ltd 19-07-2009 32.75 5/12/2009 85.85 162.13
    Jayaswal Neco Industries Ltd 21-04-2009 11.81 5/12/2009 27.15 129.88
    Gayatri Projects Ltd 25-06-2009 166 5/12/2009 372.45 124.36
    Gateway Distriparks Ltd 22-04-2009 65.65 5/12/2009 132.9 102.43
    Entegra Ltd 21-04-2009 19.94 5/12/2009 39.8 99.59
    PSL Ltd 8/6/2009 91.45 5/12/2009 153.9 68.28
    Apar Industries Ltd 19-07-2009 106.75 5/12/2009 168.85 58.17
    Sahyadri Industries Ltd 18-07-2009 59.05 5/12/2009 93.3 58
    Sharon Bio-Medicine Ltd 19-07-2009 51 5/12/2009 78.75 54.41
    Kirloskar Ferrous Industries Ltd 8/6/2009 22 5/12/2009 33.8 53.63
    EMCO Ltd 21-04-2009 55.5 5/12/2009 85.25 53.6
    MIC Electronics Ltd 21-04-2009 26.3 5/12/2009 39.8 51.33
    SNL Bearings Ltd 24-11-2009 11.37 5/12/2009 16.72 47.05
    Aegis Logistics Ltd 5/7/2009 125.35 5/12/2009 179.4 43.11
    Minda Industries Ltd 5/7/2009 155.4 5/12/2009 202.15 30.08
    Era Infra Engineering Ltd 26-07-2009 156.35 5/12/2009 200.85 28.46
    Kavveri Telecom Products Ltd 4/7/2009 51.65 5/12/2009 63.1 22.16
    Assam Company Ltd 8/6/2009 14.82 5/12/2009 17.95 21.12
    IMP Powers Ltd 8/6/2009 92.75 5/12/2009 110.05 18.65
    Deep Industries Ltd 21-09-2009 112.95 5/12/2009 127.5 12.88
    Goldstone Infratech Ltd 18-06-2009 21.75 5/12/2009 24.05 10.57
    Akruti City Ltd 30-06-2009 512.15 5/12/2009 533.75 4.21
    Maestros Mediline Systems Ltd 18-07-2009 44.5 5/12/2009 44.75 0.56
    Sumedha Fiscal Services Ltd 5/12/2009 17 5/12/2009 17 0
    CCAP Ltd 5/12/2009 41.7 5/12/2009 41.7 0
    JBF Industries Ltd 6/10/2009 93.85 5/12/2009 92.15 -1.81
    Poddar Pigments Ltd 24-11-2009 36.05 5/12/2009 35.2 -2.35
    Cochin Minerals & Rutile Ltd 6/10/2009 61.45 5/12/2009 58.75 -4.39
    EPC Industrie Ltd 18-07-2009 51.55 5/12/2009 49.2 -4.55
    Supreme Petrochem Ltd 6/10/2009 28.85 5/12/2009 27.4 -5.02
    Ecoboard Industries Ltd 14-06-2009 11.81 5/12/2009 11.21 -5.08
    Mount Everest Mineral Water Ltd 6/10/2009 63.3 5/12/2009 59.55 -5.92
    Jyoti Ltd 8/6/2009 51 5/12/2009 44.75 -12.25
    Neuland Laboratories Ltd 19-07-2009 152.85 5/12/2009 121.05 -20.8

  4. I am posting an article posted in todays edition of Deccan Herald. The total estimated cost of these pipelines is close to 20,000 Crores

    A point to be noted is that PSL is Indias largest co in HSAW Pipes and it constitutes 30% of my portfolio.

    Task force to hasten gas pipeline projects
    Aditya Raj Das, Dec 5, New Delhi, DHNS:

    The Center is planning to set up a high-powered Task Force to expedite completion of five trunk natural gas pipeline projects including two passing through Karnataka.

    “The Centre has identified five gas pipeline projects to be accorded trunk line status at the national level for their role in meeting the energy requirements of industries. The proposed Task Force will work for accelerating the laying of these pipelines,” highly placed sources in the Petroleum Ministry told Deccan Herald.

    The five trunk natural gas pipelines projects are Dabhol- Bangalore pipeline, Kochi-Kanjirkod-Bangalore-Mangalore pipeline, Jagdishpur Haldia pipeline, Dadri-Bawana-Nangal pipeline and Chainsa-Gurgaon-Jhajjar – Hissar pipeline.
    “Considering the importance of these gas pipelines the Petroleum Ministry has proposed setting up a high powered Task Force, which will
    remove roadblocks coming on the way of implementation of these projects,” sources said.

    The Task Force, which will closely monitor the progress on laying of these trunk pipelines, will coordinate with concerned state governments to sort out ground level problems stalling the implementation work, sources said.
    The Center has appointed the state-owned gas major GAIL (India) Limited to construct the Kochi-Kanjirkod- Bangalore-Mangalore pipeline and the Dabhol-Bangalore pipeline project. The 840 km long Kochi-Kanjirkod- Bangalore-Mangalore pipeline is proposed to be built at a cost of Rs 3033 crore.
    The first phase of the Kochi-Kanjirkod- Bangalore-Mangalore pipeline, which will transport Re-gasified Liquefied Natural Gas from the Kochi LNG terminal, is scheduled to be completed by March 2012.

    Second phase
    The second phase, which will cost Rs 2765 crore, is proposed to be completed by December 2012.
    The 730-km long Dabhol Bangalore pipeline project is estimated to cost Rs 4544.
    The first phase, under which pipeline will be laid from Dabhol to Bangalore via Gokak, is scheduled to be completed by March 2012. The second phase, which is scheduled to be completed by December, will focus on laying spur lines originating from Bangalore.
    The 876-km long Jagdishpur-Haldia gas pipeline is estimated to cost Rs 7074 crore while the 610 km long Dadri-Nangal pipeline and 310-km long Chainsa-Hissar project will cost Rs 2357 crore and Rs 833 crores respectively.

    These pipelines would enable existing non-gas based plants to convert to natural gas apart from creation of new gas-based projects.
    “The basis idea behind setting up high-powered Task Force is that through these projects have been approved quite some time back there is no speed in completing these major pipelines having national importance,” sources said. The main job of the Task Force will be to speed up implementation of these projects by sorting out ground level problems with coordination with concerned state governments at the highest level, sources said.

    While sourcing of gas for all these pipeline projects have been more or less finalized there have been problems in some projects for acquiring the land for creating the corridor for laying the pipelines, sources said.
    In case of the Dabhol-Bangalore gas pipeline natural gas will be sourced from the KG-D6 (in the Krishna Godavari basin) being operated by the Mukesh Ambani-owned Reliance Industries Limited (RIL), sources added.

  5. Dear Rajeevji,

    I am new to your blog and find very interesting. I have some query on "Indo Borax" and "Orchid Chemicals". I heard news on both the scripts and one of them are Orchid is going to be debt free soon. Is that news is correct? Where I can find those news if it is there about that company. Please guide me.

    With regards,


  6. srinivas,Thanks for the effort.
    I would have liked to know what my A gr calls did which I gave a list around Mar 09....

  7. Hi, Rajeev,
    my question is slightly different but retains with personal financial investment.


    I am pasting following link where author has given future values of gold @ $ 5400 in 2-3 yrs.
    I know it sounds absolutely absurd. But believe me if you see his other articles,he appears logical & genuine.
    So whats your personal opinion
    With Regards,

  8. Vikas,
    I have also said somewhere that Gold can touch 2500 within 2 yrs....
    I can't say whether it can touch 5400 but decision is yours where u wants to go....

  9. Hi Joy,
    I am not tracking Indo Borax and Orchid that much so I can't say anything on both of them...

  10. Hi Murli,
    No idea where Sharon Bio can be couple of yrs...

  11. Rajeev bhai,

    The return is fantastic on A group calls as well. i creted a watchlist with that one too. i will post it in a better format. Blog limitation is not allowing me to post in a neat format but will try to post it in someother readable format.