Analysts' recommendations on Jaypee Infratech IPO

Analysts' recommendations on Jaypee Infratech IPO

Jaypee Group-promoted Jaypee Infratech is coming out with its initial public offer of around 20 crore shares of the face value of Rs 10 each. This includes offer of sale of six crore shares by Jaipraksah Associates, the promoter company.

The issue is being made through a 100% book building process in the price band of Rs 102 to Rs 117 per share. The company offers a 5% discount to retail investors whose bid amount doesn’t exceed Rs 1 lakh. The issue represents nearly 15% of the post-IPO equity capital of the company and the promoter’s stake in the company will decline to around 85% after the issue.

It is targeting to raise a fresh capital of Rs 1,650 crore through the issue of fresh shares. Nearly 90% of the proceeds will be utilised to fund the construction of Yamuna Expressway Project linking Greater Noida with Agra. The balance will be used for general corporate purpose and meeting the issue expenses.

Here's what brokerages are saying about Jaypee Infratech IPO:

• Apply to Jaypee Infra IPO with medium-long term view: Swastika
• Jaypee Infratech IPO is fully priced: Nirmal Bang
• Subscribe to Jaypee Infra IPO with long term view: Anagram
• Jaypee Infra IPO NAV works out to be Rs 115/sh: Sharekhan