QIBs drive Jaypee Infratech IPO subscription

The initial public offer (IPO) of Jaypee Infratech received bids for 190.38mn shares compared to 221.76mn shares on offer. QIBs led the bidding even as he HNIs and Retail investors remained cautious. The IPO was subscribed 86% by 16:00 IST on Friday, as per NSE web site. The company has set a price band of Rs102-117 per share for its IPO. Retail investors will be allotted shares at a discount of up to 5% to the issue price that will be determined as per the 100% book-building route. The issue closes on May 4. The IPO is a combination of fresh issue of equity shares aggregating up to Rs16.5bn and an offer for sale 60mn shares by Jaiprakash Associates. Jaypee Infratech is engaged in the development of the 165-kilometer Yamuna Expressway (access controlled concrete pavement expressway) connecting Greater Noida and Agra. The project which includes development of 5 integrated townships along the expressway, is scheduled to be completed by 2011.

Meanwhile, the IPO of Satluj Jal Vidyut Nigam Ltd. was subscribed 56% as of 4 PM on Friday. The public sector hydro-power utility is planning to raise about Rs12bn via the IPO. The issue will close on May 3. The company has fixed a price band of Rs23-26 per share. The company came out with a public offering of 41.50 crore equity shares. The company is currently constructing the Rampur project, which is expected to be a 412 MW hydroelectric power generation facility located downstream from the NJHPS. The Rampur project is currently and commissioned in 2013. The company has also entered into memoranda of understanding with the state government of Uttarkhand for three hydroelectric projects with an expected aggregate generation capacity of 363MW.