JSW Energy fair value at Rs 80-85: Udayan Mukherjee

14890 Investors following JSW Energy. Share this News with them.

0

Like this story, share it with millions of investors on M3

JSW Energy fair value at Rs 80-85: Udayan Mukherjee

JSW Energy, a part of Sajjan Jindal-led JSW Group, will list its equity shares issued via public issue today, January 4, 2010. Managing Editor of CNBC-TV18, Udayan Mukherjee said JSW Energy looked expensive at its issue price of Rs 100 and even at Rs 95, which was for retail investors. It should start below Rs 95

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS JSW Energy to list today Nifty BSE | NSE 01/06/12 Are Mutual Funds betting on Nifty?

JSW Energy, a part of Sajjan Jindal-led JSW Group, will list its equity shares issued via public issue today, January 4, 2010. It has fixed its issue price at Rs 100 per share, at lower end of price band of Rs 100-115, due to lukewarm response from retail and non-institutional investors. Udayan Mukherjee, Managing Editor of CNBC-TV18, said JSW Energy looked expensive at its issue price of Rs 100 and even at Rs 95, which was for retail investors. It should start below Rs 95

Here is a transcript of Udayan Mukherjee's comments on CNBC-TV18. Also watch the accompanying video.

JSW Energy looks expensive at its issue price of Rs 100 and even at Rs 95, which was for retail investors. It should start below Rs 95; Rs 80-85 is the fair value for the stock.

At Rs 100 per share, market cap/MW - it comes to five plus, after considering risks like availability coal etc. Eventually, it will gave up 15% from its issue price.

It should not be a big or a good one because JSW Energy subscription numbers were pretty poor. Everybody recognizes that the stock was offered at a very expensive price level. Now retail got it at Rs 95. However, JSW Energy might debut at below that price.

The day one is difficult to call because in the last few days you have seen a miraculous, strange pull up in power stocks, etc. Hence it is unknown where it will debut and whether it will get a little bit of help in the first few hours of listing. Eventually it should settle down in Rs 80-85 zone. This seems like fair value because at the current price of Rs 100 on a market capital to mega watt it's very expensive at 5 plus, it needs to cool down. There are risks as well with coal.

So on all parameters, JSW Energy looks like it should give up 15% from its issue price. Whether it happens on day one or gradually we will find out.