Comparision

Jul 02, 2010 01:43 pm
Reads well, only at lower price band

Hindustan Media Ventures is entering the capital market on 5th July 2010 to raise
Rs. 270 crore, with a fresh issue of equity shares of Rs.10 each, in a price band of
Rs. 162 to Rs. 175 per share. The company will issue 154 to 167 lakh fresh equity
shares, depending on the price discovered, via the 100% book-built public issue,
which closes on 7th July 2010.

Another issue from the Bhartiya stable, after Jubilant Foodworks, Hindustan Media Ventures
publishes the 70 year old Hindi daily Hindustan, India’s 3rd largest newspaper in terms of
readership (99 lakh readers). It also publishes Hindi magazines Nandan (children’s magazine) and
Kadambini (general interest magazine).

‘Hindustan’, with 16% readership growth during Jul06 to Dec09, is currently the No. 1 newspaper
in Bihar (45 lakh readers) and Jharkhand (14 lakh readers), No. 2 Hindi newspaper in Delhi NCR
and No.3 newspaper in Uttar Pradesh (26 lakh readers), India’s largest market for Hindi
newspaper. Going forward, company plans to improve its readership base and circulation in Uttar
Pradesh and Uttarakhand.

A 98.85% subsidiary of HT Media, it has 17 printing facilities and an editorial team of over 800
journalists. A new printing facility at Gorakhpur, UP, will become operational by next month, which
will give the company a pan-UP presence and help it offer a complete UP pack to advertisers, thus
augmenting its position in that key growth market.

The objects of the IPO include:
1. Establishing 8 new publishing units worth Rs 66 crore, to be fully operational by FY12-end
2. Upgrading exiting plant and machinery for Rs 55 crore, during FY11
3. Immediate pre-payment of unsecured loans, borrowed for discharging purchase
consideration for Hindi business acquired from HT Media in December 2009, worth Rs
135 crore. The company will, thus become debt-free post-issue.
Coming onto the financial performance, FY10 operations have to be viewed for 8 months period
from Apr-Nov09, when the business was under HT Media, together with 4 months period from
Dec09-Mar10, post transfer of Hindi business to the company. For FY10, it reported sales of Rs.
439 crores, of which advertising revenue accounted for Rs. 297 crore (or 68% of sales). It earned
net profit of Rs. 45 crores, amounting to 10.3% net margins. Advertising revenue, the lifeline of
media companies, grew at a compounded annual growth rate (CAGR) of 33% between FY07-10.

At the lower and upper end of the price band, issue is discounting an EPS of close to Rs. 8 for FY
10, by about 20 and 22 times respectively. With focus on UP market going forward, a pre-
dominantly higher advertisement revenue generating market, the company is likely to increase its
advertising revenue to paper sales ratio of 68:32 presently, to 80:20 in next couple of years. This
will result in improvement in the bottomline. The company also enjoys operational and
management synergies with parent HT Media.

Peers such as Jagran Prakashan and D B Corp, two Hindi print media companies, though larger in
size, but with debts on their books, are presently ruling at PE multiples of 22-24 times, based on
historic earnings.

The company, with estimated market capitalisation of Rs. 1,270 crore on the upper end of price
band (debt free status due to loan pre-payment), looks good in terms of strong foothold in its key
markets, future growth prospects and group pedigree. The issue looks good at the lower band of
Rs. 162, considering its listed peers, while at the upper price band of Rs. 175, it restricts near term
and listing gains.

Apr 28, 2010 11:54 am
Jai ho!

is entering the capital market on 29th April 10, with a public issue of Rs.1,650
crores, comprising of a fresh issue, as also an offer for sale of 6 crore equity
shares, by J P Associates, being the promoters of the company, in the price band
of Rs.102 to Rs.117 per share. A discount of 5% is to be given to Retail Individual
bidders, on the discovered price.

The company is developing 165 kms., 6 lane Expressway between Noida and Agra, with
concession period of 36 years, as also developing 6,175 acres of land as real estate development,
at 5 locations between Noida and Agra, on a lease of 90 years, with each location having 1,235
acres of land. Land of 5,060 acres will be required for Expressway and 6,175 acres will be for real
estate development and entire 11,235 acres of land would be the actual cost of acquisition by
Yamuna Expressway Authority (YEA). This total land is estimated to cost Rs.2,619 crores, of
which Rs.2,556 crores, being 98% has already been paid by the company to YEA.

Apart from this, cost of construction of expressway will be Rs.5,300 crores with interest cost during
construction of Rs.1,350 crores and contingencies and preliminary expenses of Rs.470 crores.
Aggregate cost to the company, of expressway and real estate development land, would be
Rs.9,739 crores, of which, Rs.6,250 crores has been spent till 28 th February 10. The company is
running two years ahead of its expressway project and would complete it by March 11. Real Estate
development is a self sufficient project, which has infact, already realised Rs.1,090 crores in last
21 months, from sale of real estate area. Of total real estate land, 55% of the land is in NCR
region. Moreover, sale proceeds will not attract any tax as 100% of profits and gains is allowable
as a deduction for 10 consecutive years, which the company had availed from FY09.

Of the total amount spent of Rs.6,250 crores till 28th February 10, Rs.4,200 crores was raised from
banks while Rs.1,900 crores came from net worth, being share capital and reserve created on sale
of real estate area as stated hereinabove.

The company will be getting about 460 million square feet of saleable area with FAR of 1.5, of
which, 250 million sq. feet is in NCR region. So the company will be making all the efforts to sale
requisite land area, whereby, it can become debt free after availing benefits of tax free income,
under section 80 IA (4) of the Income Tax Act. So in this situation, toll income from expressway
can largely get added to the bottomline of the company, as no debt service obligations will be
there for the company.

The present equity of the company is at Rs.1,226 crores, which in any case, won’t rise beyond Rs.
1,400 crores, even if we presume issue being made at the lower band, less 5% discount to retail
individual shareholders. Assuming the company to become debt free in next couple of years, it will
have a market capitalisation / enterprise value of close to Rs.16,000 crores, taking issue price at
Rs.117 per share.

All this makes the company an infrastructure player in road, coupled with realty company, having
presence in NCR region with title and price of land having obtained on clean and best terms. All
future cash flows, from FY12 onwards, can make the company to bid and go for similar other
projects in other states or pure road and infrastructure projects.

Considering all this, issue looks quite attractive as the company has 98% paid land for realty, with
road project to get completed two years ahead of its schedule with very low gearing and expected
debt free status. 5% discount to retail individual bidder is an extra sweetner.

Investment is recommended even at the upper band of Rs.117 per share, wherein, effective cost
per share will be Rs.111.15 only.

JAYPEE INFRATECH LIMITED
Our Company was incorporated under the Companies Act, 1956, as amended, on April 5,
2007 and received the certificate for commencement of business on April 27, 2007 from
the Registrar of Companies, Uttar Pradesh and Uttarakhand, situated at Kanpur, Uttar
Pradesh, India.

Registered and Corporate Office: Sector 128, District Gautam Budh Nagar, Noida 201
304, Uttar Pradesh, India
Telephone: +91 120 4609 000; Fascimile: +91 120 4609 783. • E-mail:
ipo.jil@jalindia.co.in; Website: www.jaypeeinfratech.com

BASIS OF ALLOTMENT
PUBLIC ISSUE OF 222,933,497 EQUITY SHARES OF FACE VALUE OF RS. 10
EACH ("EQUITY SHARES") OF JAYPEE INFRATECH LIMITED (THE
"COMPANY" OR THE "ISSUER") FOR CASH AT A PRICE OF RS. 102* PER
EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS. 92 PER EQUITY
SHARE) AGGREGATING RS. 22,576 MILLION (THE "ISSUE") CONSISTING
OF A FRESH ISSUE OF 162,933,497 EQUITY SHARES BY THE COMPANY AT
THE ISSUE PRICE AGGREGATING RS. 16,500 MILLION ("FRESH ISSUE")
AND AN OFFER FOR SALE OF 60,000,000 EQUITY SHARES ("OFFER FOR
SALE") BY JAIPRAKASH ASSOCIATES LIMITED (THE "SELLING
SHAREHOLDER"). THE ISSUE INCLUDES A RESERVATION OF 2,349,600
EQUITY SHARES FOR THE ELIGIBLE SHAREHOLDERS (THE
"SHAREHOLDERS RESERVATION PORTION"). THE ISSUE LESS THE
SHAREHOLDERS RESERVATION PORTION IS REFERRED TO AS THE
"NET ISSUE". THE ISSUE WILL CONSTITUTE 16.05% OF THE FULLY
DILUTED POST-ISSUE PAID-UP CAPITAL OF THE COMPANY AND THE
NET ISSUE WILL CONSTITUTE 15.88% OF THE FULLY DILUTED POST-
ISSUE PAID-UP CAPITAL OF THE COMPANY.

ISSUE PRICE: RS 102* PER EQUITY SHARE
* a discount of 5% to the Issue Price determined pursuant to completion of the Book

Building Process has been offered to Retail Individual Bidders whose Bid amount does
not exceed Rs. 100,000/- (the "Retail Discount")

THE FACE VALUE OF THE EQUITY SHARES IS RS. 10 AND THE ISSUE
PRICE IS 10.2 TIMES THE FACE VALUE

Pursuant to Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as
amended ("SCRR") read with Regulation 41(1) of the Securities and Exchange Board of
India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (the
"SEBI Regulations"), this being an Issue for less than 25% of the post-Issue share capital,
is being made through the 100% Book Building Process wherein at least 60% of the net
Issue was to be allocated on a proportionate basis to Qualified Institutional Buyers
("QIBs") (including 5% of the QIB portion that was to be specifically allotted to mutual
funds), further, not less than 10% of the net Issue shall be available for allocation on a
proportionate basis to Non-Institutional Bidders and not less than 30% of the net Issue
shall be available for allocation on a proportionate basis to Retail Bidders, subject to
valid bids being received at or above the Issue Price.

The Issue received 128,212 applications for 268,725,383 Equity Shares resulting in
1.20@ times subscription. The details of the applications received in the Issue, through
the various escrow collection banks, from QIBs, Non-Institutional Bidders, Retail
Individual Bidders and Eligible Shareholder categories are as under: (Before technical
rejections)

No. of No. of Equity No. of times
Category
Applications Shares subscription@
Retail Individual
A 121,412 32,465,083 0.53
Bidders
Non Institutional
B 432 21,498,550 1.06
Bidders
Qualified Institutional
C 55 212,081,000 1.75
Bidders
D Eligible Shareholders 6,313 2,680,750 0.12
Total 128,212 268,725,383 1.20

@ For the purposes of deciding the allotment, the total numbers of Equity Shares to be
issued as per Prospectus and consequently the size of the Retail Individual Bidders, Non
Institutional Bidders & Qualified Institutional Bidders category were recomputed to give
effect, inter alia, to the under subscription in the Eligible Shareholders Portion and the
5% discount to the Retail Individual Bidders. For the purpose of calculating the
subscription details, the sizes of the category as per the Prospectus have been used.

Summary Final Allocation:

Gross Collections Less: Rejections Valid Applications Total Allotme
Category
Application Shares Application Shares Application Shares Application Sha
Retail
Individual 121,412 32,465,083 1,831 481,133 119,581 31,983,950 119,581 31,98
Bidders
Non
Institutional 432 21,498,550 32 392,850 400 21,105,700 400 21,10
Bidders
Qualified
Institutional 55 212,081,000 0 0 55 212,081,000 55 167,49
Bidders
Eligible
6,313 2,680,750 368 331,150 5,945 2,349,600 5,945 2,349
Shareholders
Total 128,212 268,725,383 2,231 1,205,133 125,981 267,520,250 125,981 222,93

Final Demand
A summary of the final valid demand at different bid prices is as under:

No. of Equity % to Cumulative Cumulative % of
Bid Price
Shares total Total Total
102 37,327,400 13.65% 273,482,700 100.00%
103 91,360,100 33.41% 238,080,550 87.06%
104 1,178,000 0.43% 147,821,550 54.05%
105 85,957,750 31.43% 147,734,450 54.02%
106 22,150 0.01% 62,081,750 22.70%
107 603,450 0.22% 62,074,850 22.70%
108 430,600 0.16% 61,494,650 22.49%
109 11,350 0.00% 61,081,450 22.33%
110 3,234,650 1.18% 61,078,450 22.33%
111 111,550 0.04% 60,470,900 22.11%
112 47,650 0.02% 60,454,600 22.11%
113 10,150 0.00% 60,427,550 22.10%
114 56,500 0.02% 60,424,600 22.09%
115 66,800 0.02% 60,420,600 22.09%
116 12,100 0.00% 60,371,700 22.08%
117 (including cut-
61,588,200 22.52% 60,366,300 22.07%
off)

The Basis of Allocation was finalized in consultation with the Designated Stock
Exchange, being the National Stock Exchange of India Limited ("NSE") on May 14,
2010.

A. Eligible Shareholders
The Basis of Allocation to the Eligible Shareholders of Jaypee Infratech Ltd, who have

bid at the Issue Price of Rs.102/- per Equity Share, was finalized in consultation with
NSE. The total number of Equity Shares allotted in this category is 2,349,600. The un-
subscribed portion of Equity Shares in the Shareholders Reservation Portion has been
added to the net offer and made available to Qualified Institutional Bidders, Non
Institutional Bidders and Retail Individual Bidders in the ratio of 60:10:30.

B. Allocation to Retail Individual Bidders (Including ASBA Applications) (After
Technical Rejections)
The Basis of Allocation to the Retail Individual Bidders, who have bid at the Issue Price
of (net of retail discount of 5% per Equity Share) Rs.96.90/- per Equity Share or above,
was finalized in consultation with NSE. This category has been subscribed to the extent
of 0.53 times and hence allotment was done on full and firm basis to all valid applicants.
Overall 119,581 applications for 31,983,950 Equity Shares were found valid and they
were considered for allotment. The above includes 26,324 valid applications for
7,011,750 Equity Shares made under the ASBA process. The total number of Equity
Shares allotted in Retail Individual Bidders category is 31,983,950 Equity Shares to
119,581 applicants. The retail discount portion was taken up by the Issuer and the Selling
Shareholder in the proportion of the gross amounts raised under the Issue. The un-
subscribed Equity Shares in the retail category pertaining to the Issuer were converted at
Rs. 102/- per Equity Share and added to Qualified Institutional Bidders and Non
Institutional Bidders category in the ratio of 6:1.

C. Allocation to Non Institutional Bidders (After Technical Rejections)
The Basis of Allocation to the Non-Institutional Bidders, who have bid at the Issue Price
of Rs.102/- per Equity Share, was finalized in consultation with NSE. Post adjustment for
the under subscription in Eligible Shareholders Category and Retail Individual Bidders
Category, this category was subscribed less than 1.00 times and hence allotment was
done on full and firm basis to all valid applicants. Overall 400 applications for
21,105,700 Equity Shares were found valid and they were considered for allotment. The
total number of Equity Shares allotted in this category is 21,105,700 to 400 applicants.
The Un-subscribed portion in this category was added to Qualified Institutional Bidders
category.

D. Allocation to Qualified Institutional Bidders
The Basis of Allocation to the Qualified Institutional Bidders, who have bid on or above
the Issue price of Rs.102/- per Equity Share was finalized on proportionate basis. Overall
55 applications for 212,081,000 Equity Shares were found valid. After adjustment for
Retail Discount and under subscription in other categories, 167,494,247 Equity Shares
were available for allocation to this category and were allotted proportionate basis after
allotment of 5% of total allotment in this category on proportionate basis to Mutual
Funds.

Category Fls/Banks Flls MFs ICs PFs Others Total QIBs
No. of Equity
81,292,030 9,854,953 10,323,795 66,023,469 Nil Nil 167,494,247
Shares

The IPO committee of the Company; at its meeting held at NOIDA (UP) on May 14,
2010 has approved the basis of allocation of Equity Shares of the Issue and has allotted
the Equity Shares to various successful applicants. The electronic upload of Equity
Shares has been completed on May 15, 2010. The dispatch of CAN-cum-Refund Orders
and Refund credit advice to the address of the investors as registered with the
depositories and uploading of ECS/NEFT/RTGS/Direct Credits have been completed on
May 17, 2010. In case the same is not received within ten days, investors may contact at
the address given below. The Refund Orders have been over-printed with the Bank
Account details as registered, if any, with the depositories. The Equity Shares allocated to
successful applicants have been credited to their beneficiary accounts subject to
validation of the account details with the depositories concerned.
The Company has obtained the listing and trading permission from the Bombay Stock
Exchange Limited and the National Stock Exchange of India Limited and the Equity
Shares allotted are tradable on these stock exchanges w.e.f., May 21, 2010.

INVESTORS PLEASE NOTE
These details of the allocation made would be hosted on the website of Registrar to
the Issue, Karvy Computershare Private Limited at http://karisma.karvy.com

All future correspondences in this regard may kindly be addressed to the Registrars to the
Issue quoting full name of the First/ Sole applicant, Serial number of the bid-cum-
application form, number of Equity Shares Bid for, name of the Member of the Syndicate
and place where the Bid was submitted and payment details at the address given below:

Karvy Computershare Private Limited
unit: JAYPEE INFRATECH LIMITED
Plot no. 17 to 24, Vitharao Nagar, Hitech city road, Madhapur
Hyderabad - 500081, Fax: 040-23420814
Email: einward.ris@Karvy.com

Investors with a penchant for risk can consider the initial public offer of infrastructure developer, Jaypee
Infratech, a subsidiary of the listed Jaiprakash Associates. A unique combination of infrastructure and real-
estate development, with each segment driving the other's prospects, is the company's key advantage.

The company is in an advanced stage of expressway construction that is likely to be commissioned two
years ahead of schedule. This combined with the availability of low-cost land for real-estate development
(with a good part in Noida) provide earnings visibility to Jaypee Infratech. Revenues and earnings could be
lumpy until 2011, after which the expressway would start earning toll revenues. Income from real-estate
development would be the key contributor to revenues until such time.

The primary risk to this recommendation is that both the business segments are working-capital intensive
and, until such time, the expressway is complete, liquidity could be tight. Inability to fully monetise the land
bank would also mute growth.

The offer price band is Rs 102-117. Retail investors would get a 5 per cent discount on the offer price. Post-
discount, the company's share is likely to trade at 24-27 times its annualised per share earnings for FY-10
on an expanded capital base on listing.

This is at par with infrastructure industry average. On a price-to-book basis, the valuation comes to 3.7-4.2
times; at a marginal discount to IRB Infrastructure Developers, which has a larger portfolio of roads in
operation. On an enterprise value to earnings before interest, depreciation, taxation and amortisation
(EBITDA) basis, Jaypee Infratech appears to be valued closer to real estate players rather than
infrastructure. Given that revenues from real estate are likely to be higher than income from toll, the
valuation appears justified.

The company and offer

Jaypee Infratech was launched as a special purpose vehicle in 2007 to implement a single road concession
agreement — Yamuna Expressway — that connects Noida to Agra through a 165-km single expressway,
built in Uttar Pradesh. The concession would allow Jaypee Infratech to operate and collect tolls for a period
of 36 years. This comes with about 6,175 acres of land (translating in to 530 million sq ft of area) for real-
estate development for a lease period of 90 years. The land can be developed or sold at the discretion of
Jaypee.

The company proposes to raise about Rs 1,650 core through fresh issue of shares, while the parent
company, Jaiprakash Associates, would receive about Rs 700 crore through an offer for sale. The offer
proceeds would be utilised predominantly to fund the expressway.

De-risked

Jaypee Infratech has timed its capital market foray after two key risk factors have been addressed. One, the
entire Rs 6,000 crore debt, of the Rs 9740 crore of project cost has been tied up. The remaining funding has
been done through promoter contribution and cash flow from real-estate activity. The current offer proceeds
would go towards funding only 15 per cent of the project cost. Two, the company is in possession of 96 per
cent of the land required for the expressway and expects to complete the project by 2011, two years ahead
of the 2013 target. Three, Jaiprakash Associates, the parent, with wide experience in execution of large
projects, is the contractor.

Besides, 70 per cent of the land proposed for real estate has also been handed over to the company.

Due to the above factors, Jaypee Infratech enjoys several advantages: The company would enjoy cost-
efficiencies, given Jaiprakash Associates' captive cement production and ownership of stone aggregates.
The company is unlikely to be leveraged further as the projects have tied up full funding. The company has
stated that it would keep the real-estate development self-financed, as it can sell land to monetise it, apart
from developing the same.

Low-cost land

Towards this end, Jaypee has already booked profits for the year ending FY-09 and nine months ending
December 2009 by selling residential and commercial plots. It has also initiated development of 24 million sq
ft of five residential and one commercial project, 88 per cent of which has been sold and advance received,
although none has reached the revenue-booking stage. Jaypee's biggest advantage in this project is the
lucrative land bank that has been leased to it. At the anticipated cost of Rs 2,619 crore (besides an
insignificant annual lease), the land cost works out to Rs 25 lakh per acre. It has also stated that the cost of
a small portion of the land sold in Noida was Rs 50 lakh per acre a couple of years ago.

Weighed against about Rs 5 crore per acre incurred by a few other large players in Noida in recent times,
Jaypee's deal could be termed a steal. This edge would allow Jaypee to price its projects aggressively,
especially in Noida. The company did launch its initial phase of residential projects at a list price of Rs 2100
per sq. ft, drastically lower than competitors' rates. For the nine months ended December, Jaypee's sales
were Rs 525 crore and net profits Rs 399 crore, the high margins arising solely on account of selling plots.
The 76 per cent net profit margin is unlikely to sustain once the company's development costs and revenue
are brought into the books.

A good part of the revenue for the nine-month ended December came from associate companies for hotel
and certain other developments in the township. Going forward, as revenue from residential projects are

brought into books, income from associates may dwindle as a proportion of the total revenue. With 88 per
cent pre-sales and the entire current development to be completed by 2013, the existing projects could well
manage their working capital from advances; even as toll revenues are expected to kick in from 2012.

Real-estate development may turn out to be the key driver of revenues and improve prospects for the
expressway. After all, the existence of crucial infrastructure such as road, power (hydro power to be
developed by associate company) and water in integrated townships are the key attractions for buyers of
property in Tier-II and Tier-III areas.

Toll

Toll revenues on the road project would be subject to the UP Government's toll regulations, which currently
allow about Rs 1.9/km as against Rs 1.4/km for the Mumbai-Pune Expressway. Jaypee may have to start at
modest toll rates to attract traffic. The expressway has the advantage of operating within a single State, thus
reducing hassles of inter-state movement for commercial traffic. Tourist destinations such as Mathura (along
the expressway) and Agra candrive traffic volume.

An international airport and extension of Delhi Metro are other factors that could drive traffic. Nevertheless,
the expressway cannot at this point look forward to volumes similar to the industrialised Mumbai-Pune route.

Lack of volumes may, however, be compensated by real-estate activity. It is perhaps for this reason that the
government has chosen to bundle this expressway project with such massive tracts of land for real-estate
development.

Angel Broking`s view on Jaypee Infratech, SJVN
IPOs
Source: IPO REVIEW (30-APR-10)

Comments | Post Comment

Initial public offering (IPO) of Jaypee Infratech and SJVN opened for subscription on Apr. 29,
2010.

Jaypee Infratech, a part of Jaypee Group, entered with its public initial public offering (IPO) on
Apr. 29, 2010. The issue closes on May 4, 2010. The company has set a price band of 102-107
a share. The issue size is 22,620-23,520 million.

Meanwhile, SJVN`s public issue comprises of an offer for sale of 415 million shares by the
Centre of which 3.35 million shares are reserved for the employees of the firm. The price band
of the issue has been set at in a range of Rs 23-26 a share.

Angel Broking has provided its investments ideas on the public issues along with rational for the
same.

The brokerage house is Neutral on the public issue of Jaypee Infratech. The investment
rationale is as under:

The land required for Yamuna Expressway has been acquired to the extent of 96%,
whereas that required for Real estate development to the extent of around 61%. The
Toll policy relating to the Yamuna Expressway is yet to be finalized and toll operations
would be the prime Revenue driver in the foreseeable future.

The brokerage house has assumed a ten-year development period for the company`s existing
land bank (530mn sq ft) and average realisation of Rs4,000/sq ft and Rs8,000 for each sq ft on
JIL`s saleable interest in Residential (50%) and Commercial (33%) property based on its
geographical presence. However, our Earnings estimate for the expressway over the
concession period yields a negative NPV of Rs 22 billion on FCFE basis. Accordingly, it has
arrived at a fair value of Rs 95 a share. Thus, the issue is available at a premium to its NAV
along with being fairly valued on P/BV basis of 3.8x and 4.2x on FY2010E estimates at the lower
and upper price band.

On the other hand, it has recommended `Subscribe` to the public issue of SJVN. The
investment rationale is as under:

SJVN is a joint venture between the Government of India and the state governmen
of Himachal Pradesh, formed to develop and operate the 1,500MW Nathpa Jhakr
Hydro Power Station (NJHPS). NJHPS is currently the largest operational hydroelectric power
(HEP) generation facility in India based on installed capacity. SJVN is also currently constructing
a 412 MW plant at a cost of Rs 2,047cr at Rampur in Himachal Pradesh, and is located
downstream of the NJHPS. The company also has seven projects of 3,588 MW under
development. All projects except for the Tipaimukh project are `Run of the River` projects. The
projects under implementation also include a 900 MW project in Nepal. It has arrived at a fair
value of Rs 30 and recommended a Subscribe to the IPO.

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS
from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any
information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS
especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its
website.

Issue detail of jaypee ipo

Incorporated in 2007, Jaypee Infratech Limited (JIL) is an Indian infrastructure
development company engaged in the development of the Yamuna Expressway and
related real estate projects.

Jaypee Infratech Limited (JIL) is a part of the Jaypee Group and incorporated as a special
purpose company to develop, operate and maintain the Yamuna Expressway in the state
of Uttar Pradesh, connecting Noida and Agra. The Yamuna Expressway is a 165-
kilometre access-controlled six-lane concrete pavement expressway along the Yamuna
river, with the potential to be widened to an eight-lane expressway. The expressway is
planned to begin at the existing Noida-Greater Noida Expressway, pass through various
proposed SDZs and the proposed Taj International Hub Airport and end at District Agra.

The company also has the right to develop 25 million square metres (approximately 6,175
acres) of land along the Yamuna Expressway at five locations for residential,
commercial, amusement, industrial and institutional purposes.

The Company commenced development of Noida land parcel and are presently
developing an aggregate 13.09 million square feet of saleable area across three residential
projects, which were approximately 88% sold on a square foot basis as of October 31,
2009. These three projects were launched between November
2008 and July 2009 and are expected to be completed by 2012. Through October 31,
2009, their average selling price for property under development was approximately Rs.
3,057 per square foot (including Extra Charges).

Company Promoters:
Company’s promoter, since its inception, is Jaiprakash Associates Limited (JAL). JAL is engaged primarily in
the business of (a) engineering and construction, (b) manufacture and marketing of cement, (c) real estate
development, and (d) hospitality.
Company Financials:
Particulars For the year/period ended (Rs. in million)
30-Sep-09 31-Mar-09 31-Mar-08
Total Income 276.45 5,562.57 7.66
Profit After Tax (PAT) 103.20 2,667.31 (113.69)
Objects of the Issue:
The object of the issue are:

1. To partially finance the Yamuna Expressway Project; and
2. General corporate purposes.

Issue Detail:

»» Issue Open: Apr 29, 2010 - May 04, 2010
»» Issue Type: 100% Book Built Issue IPO
»» Issue Size: 161,764,706 Equity Shares of Rs. 10
»» Issue Size: Rs. 1,650.00 Crore
»» Face Value: Rs. 10 Per Equity Share
»» Issue Price: Rs. 102 - Rs. 117 Per Equity Share

»» Market Lot: 50 Shares
»» Minimum Order Quantity: 50 Shares
»» Listing At: BSE, NSE

Jaypee Infratech Ltd IPO Grading / Rating

ICRA and CARE has assigned an IPO Grade 3 to Jaypee Infratech Ltd IPO. This means
as per ICRA and CARE company has 'Average Fundamentals'. ICRA and CARE
assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and
Grade 1 indicating poor fundamentals. Click here to download the ICRA and CARE IPO
Grading Document for Jaypee Infratech Ltd.

Check IPO Ratings from other stock analysts.

Bidding Status (IPO subscription detail):
Number of Times Issue is Subscribed (BSE + NSE)
Retail
Qualified Non
Individual
As on Date & Time Institutional Institutional Others Total
Investors
Buyers (QIBs) Investors
(RIIs)
Shares Offered / Reserved 119,752,941 19,958,824 59,876,470 22,176,470 221,764,705
Day 1 - Apr 29, 2010 17:00 IST 1.5264 0.1027 0.0156 0.0027 0.8400
Day 2 - Apr 30, 2010 17:00 IST 1.5342 0.3103 0.0480 0.0326 0.8700
Day 3 - May 03, 2010 17:00
1.6273 0.3490 0.1208 0.0444 0.9500
IST
Day 4 - May 04, 2010 18:15
1.7710 1.1544 0.6113 0.1006 1.2400
IST

Jaypee Infratech Limited (JIL) IPO Alerts
1. Tuesday, May 18, 2010 10:40:21 AM
IPO Listing - Jaypee Infratech Limited (JIL)
2. Monday, May 17, 2010 1:57:47 AM
IPO Allotment - Jaypee Infratech Limited (JIL)
3. Tuesday, May 04, 2010 10:40:12 AM
Jaypee Infratech Ltd IPO finally subscribed 1.24 times
4. Monday, May 03, 2010 10:39:01 AM
Jaypee Infratech IPO subscribed 0.95 times on day 3
5. Thursday, April 29, 2010 11:23:44 AM
Jaypee Infratech IPO subscribed 0.84 times on its day 1
6. Friday, April 23, 2010 10:53:47 PM
Upcoming IPO - Jaypee Infratech Limited (JIL)
IPO Rating

326
3.8

Rating:

Vote Here ...
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IPO Listing Detail
Listing Date: Friday, May 21, 2010
BSE Scrip Code: 533207
NSE Symbol: JPINFRATEC
Listing In: 'B' Group of Securities
Sector: Infrastructure
ISIN: INE099J01015
Issue Price: Rs. 102.00 Per Equity Share
Face Value: Rs. 10.00 Per Equity Share
Listing Day Trading Information
BSE NSE
Issue Price: Rs. 102.00 Rs. 102.00
Open: Rs. 93.00 Rs. 98.00
Low: Rs. 90.00 Rs. 90.00
High: Rs. 98.50 Rs. 98.80
Last Trade: Rs. 91.30 Rs. 91.45
Volume: 16,051,602 36,263,455
Jaypee Infratech Limited (JIL) IPO Links

› Draft Prospectus with SEBI
› Red Herring Prospectus
› Download IPO Application Form
Company Contact Information
Registered Office :
Sector 128,
District Gautam Budh Nagar,
Noida 201 304, Uttar Pradesh, India
Phone: + 91 120 4609 000
Fax: +91 120 4609 783
Email: ipo.jil@jalindia.co.in
Website: http://www.jaypeeinfratech.com

Registrar of the Issue
Karvy House, 46, Avenue 4, Street No. 1,
Banjara Hills, Hyderabad - 500 034
Andhra Pradesh, India

Phone: +91-40-23312454
Fax: +91-40-23311968
Email: einward.ris@karvy.com
Website: http://karisma.karvy.com

Book Running Lead Manager(s)
1. AxisBank Limited
2. DSP Merrill Lynch Limited

3. Enam Securities Private Limited
4. ICICISecurities Limited
5. Morgan Stanley India Company Pvt Ltd

IPO Ratings, IPO Grading and IPO Ranking are among the few popular inputs investor's uses before
applying in an initial public offerings IPO.
IPO Ratings are provided by various financial institutions & independent brokers. Few popular IPO Rating
providers in India are Capital Market, Money Control, S P Tulsian's IPO recommendations etc.
IPO Grading is provided by SEBI approved rating agencies including CRISIL, CARE and ICRA. IPO
Grading is designed to provide investors an independent, reliable and consistent assessment of the
fundamentals of IPO Issuer Companies. As IPO Grading is decided much earlier then the issue price or
issue dates are finalize (usually on the IPO filing) and they just tell about the fundamentals of the
company, investors should not consider them as 'Buy IPO' or 'Skip IPO' recommendations.
Issuer Company CRISIL / CARE / Capital Market Other Ratings
ICRA / FITCH IPO IPO Rating /Suggestions
Grading
Rating Scale > 1-5 1 - 100 -
Midfield Industries
Ltd
Hindustan Media 4 47 Emkay Global - Subscribe.
Angel Broking - Subscribe.
Ventures Ltd Hem Securities - Invest with
high risk.
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Gupta Equities Pvt. Ltd -
Engineering Ltd Subscribe
Sushil Finance - Subscribe
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Subscribe
Nirmal Bang - Looks
expensive.
Aster Silicates Ltd 2 30 Hem Securities - Avoid.

Parabolic Drugs 2 35 Mehta Equities - Avoid.
Hem Securities - Avoid.
Limited
Fatpipe Networks 2 Hem Securities - Avoid.
India Limited
Standard Chartered 45 Capital Markat Review
PLC
Satluj Jal Vidyut 4 48 Capital Markat Review
Nigam Ltd (SJVNL) Aditya Birla Money -
Subscribe with long term view.
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lower band.
Bonanza - Subscribe with long
term view.
Nirmal Bang - Subscribe for
listing gain.
Mehta Equities - Subscribe.
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Emkay - Apply.
Swastika Investmart - Apply.

Angel Securities - Subscribe.
Arihant Capital - Subscribe
with long term view.
Jaypee Infratech 3 45 Capital Markat Review
Limited (JIL) PN Vijay - Avoid.
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Swastika - Apply.
Mehta Equities - Subscribe.
Nirmal Bang - Subscribe with
long term view.
SKP Securities - Avoid.
Angel Securities- Neutral.

Last Updated On: Thursday, July 15, 2010 2:25am Refresh Quotes Today at BSE

Company Name Listed On Issue Current Profit High Low Volume Chart
Price Price /Loss

Jaypee Infratech Limited May 21, 2010 102 86.90 -14.80% 88.10 86.80 86,562
(JIL)

Basis of allotment
Basis of Allotment (or Basis of IPO Stock Allocation) is a document published by the registrar of an IPO
after finalizing the share allocation based on SEBI guidelines. This document provides information about
the demand of the IPO stock.
The IPO allotment information is categorized by number of shares applied by investors. For each such
category detail bidding information is provided in this document including number of valid application
received, total number of share applied, ratio of the allotment and number of shares allocated to the
applicants.
Ratio of the allotment is a critical factor for IPO's oversubscribed multiple times. This field tells how many
applicants will receive single lot of shares among a certain number of applicants. For example, ratio 1:8
means only one out of eight applicant received one lot of shares; ratio value 'FIRM' means all the
applicants are eligible to receive certain amount of share.

Basis of Allotment Document Issue Open Issue Close Issue Price Fixed (Rs

Jaypee Infratech Limited (JIL) IPO Apr 29, 2010 May 04, 2010 102

Hindustan Media Ventures Ltd is one of the leading print media companies in India in
terms of Readership (Source: IRS, R2 2009). They publish and print 'Hindustan', the third
largest daily newspaper in India in terms of Readership with a Readership of 9.3 million
readers (Source: IRS, R2 2009). 'Hindustan' has the largest Readership in key Hindi-
speaking markets of Bihar and Jharkhand, with a strong and growing presence in Delhi
NCR and the states of Uttar Pradesh and Uttarakhand. They are one of the fastest
growing Hindi daily newspapers in India with a growth in Readership of 9.2% in the
period between July 2006 and June 2009 (Source: IRS, R2 2007 to R2 2009).

'Hindustan' is presently printed at 16 locations in the states/regions of Uttar Pradesh,
Bihar, Jharkhand, Uttarakhand, Punjab and Delhi NCR with a total installed rated
capacity approximately 0.78 million copies per hour. These printing facilities are located
at Agra, Allahabad, Bareilly, Bhagalpur, Dehradun, Delhi NCR, Dhanbad, Jamshedpur,
Kanpur, Lucknow, Meerut, Mohali, Muzaffarpur, Patna, Ranchi and Varanasi.
'Hindustan' is published in four editions and 113 sub-editions. Hindustan Media Ventures
Ltd also publish two Hindi magazines, 'Nandan', a children's magazine, and 'Kadambini',
a general interest magazine. They also operate the website, www.livehindustan.com,
which focuses on providing news in Hindi with regional content. Further, they have also
recently forayed into event management and customized event solutions.

Company Promoters:

Hindustan Media Ventures Ltd is promoted by HT Media Ltd, a public limited company, is primarily engaged
in the business of printing and publication of newspapers and periodicals which includes 'Hindustan Times'
and 'Mint' and hosting websites including 'www.hindustantimes.com' and 'www.livemint.com'.
Company Financials:
Particulars For the year/period ended (Rs. in Millions)
31-Dec-09 31-Mar-09 31-Mar-08 31-Mar-07 31-Mar-06 31-Mar-05
Total Income 521.45 177.33 168.59 159.85 154.66 143.41
Profit After Tax (PAT) 35.68 1.96 2.83 3.51 (1.12) 7.11
Objects of the Issue:
The object of the issue are:

1. Setting up new publishing units;
2. Upgrading existing plant and machinery;
3. Prepayment of loans; and
4. General corporate purposes.

Issue Detail:

»» Issue Open: Jul 05, 2010 - Jul 07, 2010
»» Issue Type: 100% Book Built Issue IPO
»» Issue Size: 16,265,060 Equity Shares of Rs. 10
»» Issue Size: Rs. 270.00 Crore
»» Face Value: Rs. 10 Per Equity Share
»» Issue Price: Rs. 162 - Rs. 175 Per Equity Share
»» Market Lot: 40 Shares
»» Minimum Order Quantity: 40 Shares
»» Listing At: BSE, NSE

Hindustan Media Ventures Ltd IPO Grading / Rating

CRISIL has assigned an IPO Grade 4 to Hindustan Media Ventures Ltd IPO. This means
as per CRISIL company has 'Above Average Fundamentals'. CRISIL assigns IPO
grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1
indicating poor fundamentals.Click here to download the CRISIL IPO Grading
Document for Hindustan Media Ventures Ltd.

Check IPO Ratings from other stock analysts.

Hindustan Media Ventures IPO Tags:

Hindustan Media Ventures IPO, Hindustan Media IPO, Hindustan Media Ventures
Bidding, Hindustan Media IPO Allotment Status, Hindustan Media Ventures drhp and
HMVL listing.

Bidding Status (IPO subscription detail):
Number of Times Issue is Subscribed (BSE + NSE)
As on Date & Time Qualified Non Retail Total

Individual
Institutional Institutional
Investors
Buyers (QIBs) Investors
(RIIs)
Shares Offered / Reserved 7,181,737 1,659,809 4,979,429 13,820,975
Day 1 - Jul 05, 2010 17:00
0.0000 0.0000 0.0100 0.0000
IST
Day 2 - Jul 06, 2010 17:00
0.0000 0.0000 0.0400 0.0100
IST
Day 3 - Jul 07, 2010 17:00
8.9800 3.3900 1.0000 5.4300
IST

Hindustan Media Ventures Ltd IPO Alerts
1. Wednesday, July 07, 2010 10:12:32 AM

Hindustan Media Ventures IPO finally subscribed 5.43 times
2. Monday, July 05, 2010 8:54:40 AM
Hindustan Media IPO showed poor response on day 1
3. Thursday, July 01, 2010 12:15:48 AM
Upcoming IPO - Hindustan Media Ventures Ltd
IPO Rating

207
3.8
Rating:

Vote Here ...
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IPO Listing Detail
Listing Date:
BSE Scrip Code:
NSE Symbol:
Listing In:
Sector:
ISIN:
Issue Price: Rs. 166.00 Per Equity Share
Face Value: Rs. 10.00 Per Equity Share
Listing Day Trading Information

Hindustan Media Ventures Ltd IPO Links

› Draft Prospectus with SEBI
› Red Herring Prospectus

› Download IPO Application Form
Company Contact Information
Registered Office :
Budh Marg,
Patna 800 001, Bihar, India

Phone: + 91 612 2223434
Fax: + 91 612 2221545
Email: hmvlipo@hindustantimes.com
Website: http://www.hmvl.in

Registrar of the Issue
Karvy House, 46, Avenue 4, Street No. 1,
Banjara Hills, Hyderabad - 500 034
Andhra Pradesh, India

Phone: +91-40-23312454
Fax: +91-40-23311968
Email: einward.ris@karvy.com
Website: http://karisma.karvy.com

Book Running Lead Manager(s)
1. EdelweissCapital Limited
2. Kotak Mahindra Capital Company Limited

About gspc

GSPC files DRHP to bring out its IPO
State-run Gujarat State Petroleum Corporation (GSPC) has filed much awaited Draft Red Herring
Prospectus (DRHP) with the regulatory body SEBI to bring out its Initial Public Offering (IPO).

The Gujarat government owned company which is into exploration and trading of petroleum
products will raise Rs 3,050 crore from the market and will issue 48.5 crore new equity shares
having face value of Re one per share, sources in the GSPC said.

The company will use IPO proceeds to funds its existing projects and repay the loans. Around Rs
1,200 crore will be used to fund the project of Deen Dayal Block in KG basin, they said.

The Director General of Hydrocarbon (DGH) has certified two TCF (trillion cubic feet) gas
reserves in GSPC's Deendayal blocks in the KG basin.

Presently, exploration is underway in GSPC operated block KG-OSN 2001/3 located in
Deendayal West field and so far 16 wells have been drilled in the area.

According to the state government, commercial production of oil and gas from the field is
scheduled to begin from 2012-13.

By Agencies







By Agencies







Gujarat State Petroleum Corporation (GSPC) is the flagship concern of the GSPC Group
involved in exploration and production (E&P) of oil and gas. In the initial years, GSPC was
engaged in pursuing projects in the downstream hydrocarbon sector. By the mid nineties, the
company realigned its vision to explore the untapped opportunities which presented
themselves with the privatisation of the hydrocarbon sector.

E & P Initiatives

The company acquired several discovered oil and gas fields in the first and second rounds of
bidding initiated by the Government of India during 1994-95. This process achieved a further
impetus with the announcement of the New Exploration Licensing Policy (NELP) by the
Government of India in 1999. GSPC was among India’s first companies to participate in the
NELP bidding process and acquire exploration blocks across the country. Today, the company
has an international portfolio with exploration acreage in Australia, Egypt, Yemen and
Indonesia.

We are one of the leading oil and gas exploration, development and production companies in India. We are
lso one of the largest gas trading companies in India. In addition, we have a significant presence in the gas
ransmission and gas distribution businesses. Our exploration, development and production activities are
onducted both onshore and offshore in India and overseas. Government of Gujarat along with its public
ector undertakings are holding more then 97% of equity of the company as on 31-Mar-10.

Our primary asset is the Deen Dayal field in the Krishna-Godavari basin (the “KG basin”) located off the east
oast of the State of Andhra Pradesh, India, which has significant gas reserves, part of which, Deen Dayal
West (“DDW”), we are currently developing for commercial production. We are the operator of the offshore
KG-OSN-2001/3 block (the “KG block”), which includes the Deen Dayal field, and hold an 80.0% Working
nterest in the block

We also hold Working Interests in 15 producing fields in the Cambay basin. As of September 30, 2009, we
held Working Interests in 60 onshore and offshore exploration and production blocks. 49 of these blocks are
ocated in India and 11 are located in Australia, Egypt, Indonesia and Yemen. We conduct all of our
xploration, development and production activities through unincorporated joint ventures with other domestic
oil and gas companies and foreign partners and pursuant to PSCs and PSAs.

We, through our Subsidiaries and Associates, operate the largest gas transmission and distribution network in
he State of Gujarat. Our subsidiary, Gujarat State Petronet Limited (“GSPL”), which, is a gas transmission
ompany on common carrier basis. GSPC Gas and Sabarmati Gas, are engaged in the business of City Gas
Distribution and related pipeline infrastructure in Gujarat. Between them, these companies have developed
pipeline infrastructure and supplied piped gas to domestic customers, industrial customers and commercial
ustomers and Compressed Natural Gas (“CNG”) stations in Gujarat.

We trade in gas and Liquefied Natural Gas (“LNG”), catering to industries engaged in power generation,
teel and city gas distribution, among others.

We engage in other activities in the energy sector as well. Our wholly owned subsidiary, GSPC LNG Limited
GSPC LNG”), is developing a LNG terminal at Mundra in Gujarat. Our associates company Gujarat State
Energy Generation Limited (“GSEG”), which owns and operates a gas based power plant at Hazira in
Gujarat. Another wholly owned subsidiary, GSPC Pipavav Power Company Limited (“GPPC”), intends to set
up a gas-fired combined cycle power plant project at Pipavav in Gujarat. We have also set up a wind farm at
akhau in Gujarat.

India’s top 10 IPO’s :

1. Reliance Power -11,700 crores in 2008 : This could easily be India’s disastrous IPO. Anil Ambani
has granted bonus shares to repair the damage done to the investors. That did not help as the
stock never recovered. It is languishing at 170 rupees which is much below the IPO price including
the bonus shares. There was no successful IPO after Reliance Power and markets are looking for
Adani Power for a revival. Issue price of this IPO – 405-450 per share. Current Market Price :
Rs.172
2. ONGC : 9500 crores in March 2004. It was the biggest IPO until Reliance Power came along.
Issue price 680-750. Current Market Price : Rs. 1125
3. DLF : 9188 crores in 2007. It was one of the successful IPO’s during the boom period. Though it
did not give the listing gains as promised the stock has seen a dream run and went till the 1000
rupee level when Sensex was at 21000. The price band was 500-550. Current market price is : Rs.
393
4. Cairn India - 5788 crores in 2006 : Yet another oil and exploration company after ONGC. The
price band was Rs. 160-190. Current market price is : Rs. 246

5. Tata Consultancy Services – 5420 crores in 2004 : One of the successful IPO’s which has seen
interest from around India. Current Market Price is 482.
6. NTPC – 5368 crores in 2004 : Government has diluted 10.5% stake in this PSU to gather 5368
crores. Current Market Price is Rs. 210
7. Reliance Petroleum – 2700 crores in 2006 : This debuted in the golden period or the boom
period. This was the last successful IPO from Reliance stable. The initial price band was Rs 57-62.
Current Market Price is . This will now be replaced/pushed by Adani Power IPO which is set to
gather 3000 crores from the markets. In few months Reliance Petroleum will no longer exist as it
is gobbled up by Reliance Industries.
8. Idea Cellular – 2443 crores in 2007 : Price band is Rs 65-75 per share. Current market price is
Rs. 81. Only telecom IPO in the list. Airtel had a modest IPO of less than 1000 crores in 2002.
9. Reliance Petroleum – 2172 crores in 1993. This is not a mistake. This was the initial IPO of
Reliance Petroleum which was later merged with Reliance Industries which again came up with
another IPO in 2006 (listed at #7). And now Reliance Petroleum is merged with Reliance
Industries again. Something very common for Reliance.
10. Jet Airways – 1899 crores in 2005. The biggest airline IPO until Air India IPO comes along. It
was introduced in the price band of Rs. 950-1125. The current market price is – Rs. 247. (source)

India's most successful IPOs in 2007
Source: ChilliBreeze

Investments in stock markets are hot! So which are the successful IPOs this year and which companies are
running high on the stock exchange? Where have majority investors put their money? Read on to find out!

2006 saw several successful IPO issues. Astounding economic growth rates, large amounts of corporate
profits, expansion plans, buoyancy of the stock market, and political stability are some of the factors that
encouraged companies to opt for IPOs in 2006 and 2007 to raise funds. The strengthening position of the
Indian Rupee also added to the optimism. Further, the secondary markets for stocks are flourishing which
also is a factor that influenced companies to participate in the primary markets. Last year, India had the 8th
largest volume of IPOs in the world with Indian companies raising US$ 7.23 billion in the domestic stock
markets! This year the stock markets have performed even better.

2007 began on an optimistic note. Financial experts estimated around 150 companies to turn to the stock
markets to raise around US$ 10 billion in capital through the primary market. Some of the top Initial Public
Offers during the year were:

• Orbit Corporation Ltd.

• Global Broadcast News Ltd.

• Pyramid Saimira Theatre Ltd.

• Everonn Systems India Ltd.

• Gremach Infrastructure Equipment & Projects Ltd.

• Redington (India) Ltd.

•

• MIC Electronics Ltd.

• Power Grid Corporation of India Ltd.

• Allied Computers International (Asia) Ltd.

An IPO by ICICI Bank Ltd. to raise an amount of US$ 4.3 billion in the middle of the year was
oversubscribed. DLF, the real estate giant, also had a similar experience with its equity issue around the
same time. The Central Bank of India also raised US$ 201 million from its IPO this year.

Overall, it is the real estate sector that reaped the maximum advantage of bullish stock market trends in
2007. Apart from DLF, other real estate players like Housing Development and Infrastructure Ltd.,
Puravankara Ltd., and Nirman Ltd. raised $3.7 billion from the primary capital markets. According to a

Reason to fail reliance power ipo
Some reasons are:

• It was entirely/heavily hyped up. It was oversubscribed by over 15 times and
people were crazy about that stock
• It was over priced. A company like NTPC that has an existing power production
capacity of 20,000 KW is being traded at Rs. 200/- and a new company that is

proposing a 25,000 KW power production after 3 years is being offered at Rs.
450/- on an IPO
• Everyone wanted to make a quick buck. People thought that Reliance power
would touch Rs. 800/- on the day of listing and keep going higher and they can
sell it to make a hefty profit.
• The basic logic of the stock market was missed. If everyone wants to sell their
shares - a stock price always goes down

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