Price band fixed at Rs 102-117 a share.
Jaypee Infratech, a subsidiary of Jaiprakash Associates, will enter the market with an initial public offering of Rs 2,300 crore which will be the biggest non-PSU offering this calendar year.
The infrastructure development company's IPO will consist of an offer for sale of 6 crore shares by the promoter group as well as a fresh issue of shares totalling to Rs 1,650 crore. Jaiprakash Associates' holding post the issue will come down to around 82 per cent from 99.1 per cent said a merchant banker with the issue.
The price band for the issue has been set at Rs 102-117 a share. The issue will open on April 29 and will close on May 4. The retail investors will be offered a discount of five per cent to the issue price. The shares will be listed on the BSE and NSE.
The proceeds from the issue will be used to partially finance the Yamuna Expressway Project. “The total cost of the expressway project is Rs 9,392 crore, of which Rs 1,500 crore will be funded through the issue,” said Mr Manoj Gaur, Executive Chairman of Jaypee Infratech.
The Company is engaged in the development of the 165-kilometer Yamuna Expressway (access controlled concrete pavement expressway) connecting Greater Noida and Agra and scheduled to be completed by 2011 and development of five integrated townships.
The qualified institutional buyers will be allotted 60 per cent of the shares, the high networth individuals 10 per cent and retail 30 per cent. The issue will also be open to anchor investors.
Rating agency ICRA has assigned the issue “IPO GRADE 3”, which indicates average fundamentals.
Morgan Stanley India Company, DSP Merrill Lynch, Axis Bank, Enam Securities, ICICI Securities, IDFC Capital, JM Financial Consultants, Kotak Mahindra Capital Company and SBI Capital Markets are book running lead managers to the issue.
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