CNBC-TV18's Sunita Nagpal reports on the positives and negatives cues for JSW Energy .
Below is a verbatim transcript of her comments on CNBC-TV18. Also watch the accompanying video.
The last subscription number is 1.5 times issue. The high net worth individuals (HNI) is only 0.5 times subscribed. The retail figures are also very low.
The retail investor normally comes on the last day of the issue. Therefore, we expect retail investor to come in.
In case of Godrej Properties and JSW Energy, there are different views. The valuation seems to be slightly on the higher side. They are looking at the capacity at the end of FY11. NTPC is quoting a lower price but there are some positives because they have a 50-50 long term-short term merchant power tariff mode. Hence, there will be some upside coming from the merchant of power side.
Toshibha JV is very promising. They are looking at a capacity of 3140 megawatt by end of next fiscal. This is slightly better than the recent power initial public offering (IPO). Things are in favour of the company. However, the valuation was slightly on a higher side, which is against the company. They have a lot of dealing with the JSW Group. These dealings are not very water tight. The price of the coal is linked with RB index which could be a risk going forward.
