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Friday, April 23, 2010

Jaypee Infratech IPO to open on Apr 29

Jaypee Infratech, a part of Jaypee Group, is entering capital market with a public issue on April 29, 2010, reports CNBC-TV18.

Infrastructure development company has fixed the price band for issue at Rs 102-117 a share and the issue will close on May 4. Retail investors will get shares at 5% discount to issue price.

The company is engaged in the development of the Yamuna Expressway, which 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, and related real estate projects.

Jaypee Group incorporated this company on April 5, 2007 as a special purpose company to implement the concession. This concession also included 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 issue consists of fresh issue aggregating up to Rs 1650 crore and an offer for sale of 6 crore equity shares by Jaiprakash Associates (JAL). JAL owns 99.1% of equity shares of company.

Proceeds raised from the fresh issue will be partially used for financing the Yamuna Expressway Project while money from offer for sale will be received by JAL.

The book running lead managers to the issue are Morgan Stanley India Company Private Limited, DSP Merrill Lynch Limited, Axis Bank Limited, Enam Securities Private Limited, ICICI Securities Limited, IDFC – SSKI Limited, JM Financial Consultants Private Limited, Kotak Mahindra Capital Company Limited and SBI Capital Markets Limited. Karvy Computershare Private Limited is the registrar.


At 11:35 AM, Anonymous Abhishek said...

Jaypee Infratech despite hiring 9 investment banks to sell its IPO just managed to get 1.2 times subscription . Moreover this was done at the lower end of the band . . Jaypee because the opacity and subjectivity in valuation of these real estate companies is too high. You should expect a huge discount due to this uncertainity which investors were not getting in this IPO .Read more at


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