Jet Airways IPO priced at Rs 1100 per share

The Jet Airways initial public offering (IPO) has been priced at Rs 1,100 per share.

The IPO, which was offering 17.27 million shares or around 20 per cent of Jet's expanded equity, was oversubscribed to the extent of 18.7 times when the bidding closed on Thursday, February 24, 2005.

The IPO generated a total demand of approximately 279.8 million shares equating to transaction coverage of around 16.2 times.

The qualified institutional buyer's tranche was covered around 23.7 times by participation from large domestic and global institutional investors.

The pricing was decided late in the evening in a meeting of the company officials with the merchant bankers to the issue. The merchant bankers described it as an "investor friendly" pricing".

According to information the issue was subscribed around 16 times at the price level of Rs 1125, the upper end of the price band, while the lower end was Rs 950.

The issue also saw strong interest from investors leading to oversubscription in retail, non-institutional and institutional tranches.

In a statement, Naresh Goyal, chairman of Jet Airways said "We are delighted with the enthusiastic response to our initial public offering. We have set the final price at Rs 1,100 despite overwhelming demand and despite the recommendation of our advisors that we price the issue at Rs 1,125. We want to build a long-term relationship with our investors, give them an opportunity to participate in the continuing growth of our company and underscore our commitment to enhancing the shareholder value."