The listing of three big initial public offers (IPOs) — JSW Energy, D B Corp and Godrej Property — this week would be yet another test for the lackluster primary markets.
In the past some of the big IPOs including state-run hydro power producer NHPC, Adani Power, DEN Networks and Indiabulls Power among others had witnessed poor listing. While JSW Energy would list on Monday, Godrej Property will list on Tuesday and D B Corp on Wednesday. “If all the three IPOs witness fairly good listing there would be some revival in the IPO market. While D B Corp is likely to fair well, most market players have their reservations about the other two IPO,” said a managing director of Mumbai based brokerage house.
The Rs 2,700-crore IPO of JSW Energy, part of Sajjan Jindal-led JSW Group, had fixed an issue price of Rs 100 a piece, the lower end of the price band, for institutional investors whereas the issue price for retail investors was set at Rs 95, a piece at a discount of Rs 5. The price band of the issue was between Rs 100 to Rs 115.
Godrej Property, which raised nearly Rs 500 crore, too had fixed the issue price at Rs 490 per share, at lower end of price band of Rs 490-530. The retail and high net worth portion of IPOs by JSW Energy and Godrej Properties was under-subscribed.
However, D B Corp, the publisher of Dainik Bhaskar which raised Rs 385 crore, had fixed the issue price for non retail investors at Rs 212, at the upper end of the price band. For the retail investors the price band was set at a discount of Rs 2 at Rs 210. D B Corp, which was subscribed nearly 40 times and was the highest subscribed IPO of 2009. The portion for retail investors, which in some recent IPOs was under-subscribed, was subscribed nearly three times in D B Corp IPO. The price band of the issue was between Rs 185 to Rs 212.