Jaypee Infratech’s IPO Opened for Subscription
The initial public offering of Jaiprakash Associates' subsidiary, Jaypee Infratech, has opened for subscription.
According to the data available on the NSE website, it has been subscribed 0.7 times till now.
Jaypee aims to raise a maximum of Rs. 23.5 billion (USD 530 million) through its issue. The price band for issue that closes on May 4, is at Rs. 102-117 per share.
The company is involved in the progress of the Yamuna Expressway that is a 165-kilometre access-controlled six-lane concrete pavement superhighway along the Yamuna River, with the probability to be broadened to an eight-lane highway, and correlated realty ventures.
Investment Advisor, SP Tulsian says that issue looks pretty impressive as the organization has 98% paid land for real estate, with road project to get finished two years prior its schedule with very little gearing and estimated debt free position.
Tulsian said, "10% 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. 105.30 only".
Money raised from the fresh issue will be partly utilized for funding the Yamuna Expressway Project, while proceeds from offer for sale will be taken by JAL.