JSW Energy IPO soon

SW Energy is planning to raise Rs 3,000 crore via the initial public offering (IPO). JSW Energy is planning to use its IPO proceeds to fund expansion.  JSW Energy will primarily use the money to part fund power projects and mining venture. The company is building power plants with a combined capacity of nearly 3,000 megawatts (MW) and has plans to develop utilities in western, eastern and southern India.

Adani Power and state-run NHPC have raised a combined $1.9 billion through IPOs in the last one month with their offerings subscribed more than 20 times each.

JSW Energy is not a subsidiary of the listed company JSW Steel. It holds just about 5.7% stake in the company. This is how the entire promoter holding stands. Sajjan Jindal holds 5.5% stake, JSW Investments hold 39% stake and Sun Investments hold 19.82% stake. 

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Adani Power IPO Allotment

Click here allotment status for this IPO. 

The issue price for Adani Power IPO is fixed at Rs.100/- per equity share. This is the higher end of the price band. The IPO is expected to hit the market on August 20.

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Initial Public Offering

IPO or the Initial Public offering is the first sale of stock by a private company to the public.They are usually issued by smaller, younger companies seeking capital to expand its operations. They are also done by large companies looking to become publicly traded.

IPOs can be a risky investment. For the individual investor, it is tough to predict what the stock will do on its initial day of trading and in the near future because there is often little historical data with which to analyze the company. However, this risky investment can fetch excellent results as well in a very short time.

The money paid by investors for the newly-issued shares goes directly to the company in contrast to a later trade of shares on the exchange, where the money passes between investors. The company is never required to repay the capital, but instead the new shareholders have a right to future profits distributed by the company.

A company that is planning an IPO appoints lead managers to help it decide on an appropriate price at which the shares should be issued. This is called the Issue price of the IPO. The most common method of issuing a IPO is though the book building process. The other method would be to fix a price by the company with the help of lead managers.

After the initial bidding of the IPO, the company issues the shares to successful bidders. This process takes about 15-20 days before it starts trading in the stock market. The initial day of trading usually sees a large fluctuation in the share value. This can used by traders for making profit.

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