Jaypee Infra IPO NAV works out to be Rs 115/sh:Sharekhan
Sharekhan is of the view that Jaypee Infratech’s the net asset value per share works out to be Rs 115 which is close to the higher end of the issue price band.
By ET Bureau |
MUMBAI: Sharekhan is of the view that Jaypee Infratech’s the net asset value per share works out to be Rs 115 which is close to the higher end of the issue price band.
“However, there is potential for upside in the stock’s valuations if the company is able to monetise its
land bank at a much faster rate and higher than expected realizations,” the IPO note by the brokerage said.
Jaypee Infratech will hit the primary market Thursday with an initial public offer of 20.1 - 22.2 crore shares. The company has fixed the price band of the issue at Rs 102-117 per share and plans to raise between Rs 2,262-2,352 crore.
“Jaypee Infratech is likely to benefit from its parent company, Jaiprakash Associates (JAL), in terms of resources and execution skills. The ongoing project is running ahead of schedule and provides comfort with regard its execution. The Jaypee group’s strong brand name, strong execution capabilities and quality land bank would ensure sustainable growth for Jaypee Infratech.
However, in terms of financials the company is having negative cash flow from its operations due to the longer gestation nature of the business,” the note added.
“However, there is potential for upside in the stock’s valuations if the company is able to monetise its
land bank at a much faster rate and higher than expected realizations,” the IPO note by the brokerage said.
Jaypee Infratech will hit the primary market Thursday with an initial public offer of 20.1 - 22.2 crore shares. The company has fixed the price band of the issue at Rs 102-117 per share and plans to raise between Rs 2,262-2,352 crore.
“Jaypee Infratech is likely to benefit from its parent company, Jaiprakash Associates (JAL), in terms of resources and execution skills. The ongoing project is running ahead of schedule and provides comfort with regard its execution. The Jaypee group’s strong brand name, strong execution capabilities and quality land bank would ensure sustainable growth for Jaypee Infratech.
However, in terms of financials the company is having negative cash flow from its operations due to the longer gestation nature of the business,” the note added.
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