KSK Energy Ventures IPO Analysis

June 23, 2008

Keynote Capitals set “Subscribe with a long term view” recommendation on KSK Energy Ventures IPO, which opens for subscription on June 23 and closes on June 25.

KSK Energy Ventures IPO details:

Price Band: Rs. 240 - 255 per share
Issue open between: June 23 - June 25, 2008
Book Running Lead Managers: Kotak, IDFC-SSKI, Morgan Stanley, Edelweiss
To List on: NSE and BSE
Market Cap post-listing: Rs. 88.26 billion or $2.05 billion (based on the cap price)

Synopsis

- KSK Energy Ventures Ltd. (KSKEVL) was incorporated in 2001 to develop power projects. The company has a power generating capacity 144MW.

- India is facing a tremendous shortage of power which is 15% at peak period. Even in spite of consistent efforts to improve the situation, lack of presence of the private sector and huge T&D losses, the demand-supply mismatch remains.

- The Electricity Act 2003 liberalized the power sector, allowing private sector players to develop power projects. The Government, in its mission ???Power for All by 2012??? has stated objectives to provide sufficient, reliable and inexpensive power. It has targeted 78,577MW capacity addition in 11th five year plan period, i.e., 2007-12.

- In the last few years, many private sector players have entered the fray, to develop power plants, e.g., Tata Power, Reliance Power, etc. The sector will attract huge investments going forward, as demand for power is unlikely to come down.

READ MORE

http://www.stockmarketsreview.com/pricetargets_india/

Posted in IPO