U.S. News

UPDATE 1-India's SJVN prices IPO at top end; Jaypee at bottom


MUMBAI, May 10 (Reuters) - Two Indian companies priced their initial public offers on Monday at the opposite end of their indicated band, company and sources said, showing investors were reticent to back high-priced share sales. State power utility SJVN Ltd, which raised $240 million, said in a newspaper advertisement it set the price at the top end of the 23 to 26 rupees a share range. The IPO was the first share sale by the government in this fiscal year that started on April 1 and was covered 6.6 times when it closed on May 3. Institutions had bid almost nine times their allotment, while retail investors were three times. Private-sector road builder Jaypee Infratech raised about $502 million after the deal was priced at the bottom of its 102 to 117 rupees a share range, according to sources with direct knowledge. The company, a unit of construction firm Jaiprakash Associates, had received most bids at 102 rupees and was covered 1.24 times. Jaypee is developing the 165-kilometre, six-lane Yamuna Expressway in the northern state of Uttar Pradesh at a cost of $2 billion. The expressway will connect Noida, near Delhi, with the city of Agra, where the Taj Mahal is located. The company plans to develop real estate of about 25 million square metres along the expressway. Both offers will issue shares to retail investors and employees at a 5 percent discount to the issue price. (US$1=45 rupees) (Reporting by Prashant Mehra; Editing by Ranjit Gangadharan) ((tony.munroe@thomsonreuters.com; +91 22 6636 9257; Reuters Messaging: tony.munroe.reuters.com@reuters.net)) Keywords: JAYPEEINFRA IPO/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.