Date:23/03/2005 URL: http://www.thehindubusinessline.com/2005/03/23/stories/2005032301890300.htm

Back Jaiprakash Hydro IPO oversubscribed

Our Bureau

Mumbai , March 22

THE public offer for buying stake in Jaiprakash Hydro Power Ltd, promoted by Delhi-based Jaiprakash Associates, was oversubscribed within minutes after the offer opened today. At the end of the day, the offer was subscribed almost two times.

Institutional investors' share was oversubscribed 3.5 times, according to ICICI Securities, one of the managers of the sale. The public offer is a first by any hydro-power company and aims to raise Rs 576 crore to fund a 1,000 mega watt project in Himachal Pradesh.

UTI Bank, ICICI Securities Ltd, JM Morgan Stanley and Allianz Capital & Management Services Ltd are managing the Jaiprakash IPO, which closes on March 29.

"Investors have shown that they are interested in infrastructure companies. This is good news for power, which is the most capital-intensive industry," said Mr S. Mukherjee, Managing Director and CEO, ICICI Securities.

The company is offering 18-crore equity shares or 36.7 per cent stake in Jaiprakash Hydro-Power Ltd at between Rs 27 and Rs 32 each. The final price will be determined on the basis of bids received from investors.

Jaiprakash Hydro operates the 300-MW Baspa-II hydro power project in Himachal Pradesh on a build-own- operate and maintain basis. During the year ended March 31, the company reported net sales of Rs 295 crore and net profit of Rs 57.9 crore.

According to Mr Mukherjee, the response to Jaiprakash's offer has been partly triggered by the success of National Thermal Power Corporation, which raised $1.2 billion from an initial sale in October that attracted demand for 13 times the number of shares on offer.