JSW adding another feather to its cap

The initial public offering (IPO) of JSW Energy, a part of Sajjan Jindal-led JSW Group, has been fully subscribed on the first day of the issue opening. The issue is of Rs 2,700 crore. The price band is between Rs 100 and Rs 115 per equity share and the issue will close on December 9, 2009
Sharekhan’s view on JSW Energy IPO
While comparing with other power utilities, JSWE (post issue) looks fairly priced both in terms of price/book (P/B) as well as market cap/MW basis. However, JSWE is having clear revenue visibility at least from the 995-MW operational capacity. Also, another 2,280MW capacity coming up within 18 months would provide further boost to its near future revenue stream. We believe, although listing gains may not be huge looking at reasonably priced offer price, the expected commissioning of power plants within two years provides JSWE a better revenue visibility vis-à-vis its peers.
Angel Broking’s view on JSW Energy IPO
We have valued all the upcoming projects of the company individually and have arrived at a Fair Value of Rs 107/share, excluding all other initiatives in mining, equipment manufacturing and other projects totaling 7,740MW projects under implementation, as these businesses are at nascent stages. We believe that the IPO is fairly priced and keep a Neutral view on it.”
Investment Advisor, SP Tulsian’s view on JSW Energy IPO
Looking to the aggression and execution capability, which has been exhibited by the group in JSW Steel, the present progress of the power projects of the company, it has good prospects of growing faster than its peers in the energy sector, as an integrated player. Even now, the financials of the company are better placed with its peers.