Short-sellers in JSW Energy may lose

Traders, who have gone short on the JSW Energy issue in the grey market, could find themselves in a spot of bother. Talk is that the issue is likely to be priced closer to the lower end of the price band of Rs 100-115.

The issue, which has been subscribed 1.7 times, received a moderate response from investors. The company may have decided against pricing the issue aggressively.

A leading investment bank, which failed to find a place in the syndicate of lead managers to the issue, is said to have heavily short sold through grey market punters.

The punters pushed the price down to a discount of around Rs 4 to the top end of the price band. Now, that the issue is likely to be priced even lower than that, the punters could be in for a nasty surprise.

But they may still end up making a tidy profit, if the stock lists at a discount to the issue price.