Monday, July 14, 2008

KSK Energy Ventures trades at discount over IPO price

KSK Energy Ventures was trading at Rs 211.70 on BSE at 10:00 IST, a discount of 11.79% over the initial public offer price of Rs 240.
The stock debuted at Rs 220, a discount of 8.33% over the initial public offer (IPO) price. It hit a high of Rs 234.80 and a low of Rs 205.10 in early trade. On BSE, 4.88 lakh shares changed hands on the KSK Energy Ventures counter.
The current price of Rs 211.70 discounts the company's year ended March 2008 (FY 2008) earnings per share (EPS) of Rs 3.3, by a price earning (PE) multiple of 64.15.
The KSK Energy IPO had ended on 25 June 2008 with 1.50 times subscription. The IPO received bids for 5.20 crore shares as against 3.46 crore shares on offer. The qualified institutional buyers category was subscribed 2.21 times and the non-institutional investors portion was subscribed 1.08 times. However, the retail portion remained undersubscribed at 0.22 times.
The company had priced the IPO at the lower end of the Rs 240 - Rs 255 per share price band. Earlier, the company had completed a pre-IPO placement of 1.73 crore equity shares at a price of Rs 240 per share, thus raising over Rs 415 crore.
KSK Energy was established in 2001 to capitalise on emerging opportunities in the Indian power sector and focus on developing, operating and maintaining power projects.
It has operational power plants capable of generating 144 megawatts (MW) of power, and it is currently constructing, developing or planning power projects capable of generating an aggregate of 8,993 MW of power.
The company reported a profit after tax of Rs 108.65 crore on sales of Rs 239.13 crore in FY 2008.

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