{"id":441,"date":"2010-05-22T01:04:01","date_gmt":"2010-05-21T19:34:01","guid":{"rendered":"http:\/\/greenworldinvestor.com\/?p=441"},"modified":"2010-05-22T01:04:01","modified_gmt":"2010-05-21T19:34:01","slug":"case-of-sour-grapes-jaypee-infratech-attributes-10-price-decline-on-day-of-listing-to-bad-market-conditions","status":"publish","type":"post","link":"https:\/\/iiec-india.org\/greenworld\/2010\/05\/22\/case-of-sour-grapes-jaypee-infratech-attributes-10-price-decline-on-day-of-listing-to-bad-market-conditions\/","title":{"rendered":"Case of Sour Grapes &#8211;  Jaypee Infratech attributes 10% price decline on day of listing to Bad Market Conditions"},"content":{"rendered":"<p>Jaypee Infratech which is one of the low quality offerings (IPOs) to list in the Indian market fell 10% on the very day of the listing.This is despite allocating shares at the lowest end of the book building range.This is also despite hiring a <a href=\"http:\/\/greenworldinvestor.com\/2010\/05\/05\/jaypee-infratech-ipo-just-manages-to-scrape-through-at-lower-end-of-price-band-despite-nine-i-banks-selling-it\/\">record number of Nine Investment Banks <\/a>to sell the issue.However Jaypee Infratech does not consider the 10% fall on the day of listing as too bad and thinks that it was because of bad\u00a0 market conditions.Don&#8217;t think the management might have considered that the fall in the stock price might have been due to the poor fundamental and pricing of the company.<a href=\"http:\/\/greenworldinvestor.com\/2010\/05\/20\/sjvn-leaves-nothing-for-ipo-investorstarapur-transformers-falls-more-than-30-since-ipo\/\">SJVN which listed a day before has fallen only 5%<\/a> after listing at the top end of the book building range.I may be wrong and\u00a0 Jaypee Infratech may turn out into a &#8220;great investment&#8221; because valuing the <a href=\"http:\/\/greenworldinvestor.com\/2010\/04\/25\/why-do-people-invest-indian-real-estate-companies\/\">fundamentals of real estate in India is extremely difficult if not\u00a0 impossible<\/a> from publicly available information.<\/p>\n<h3><a href=\"http:\/\/economictimes.indiatimes.com\/markets\/stocks\/views\/recommendations\/Investors-have-failed-to-recognise-Jaypee-Infratechs-potential\/articleshow\/5960074.cms\">\u2018Investors have failed to recognise Jaypee  Infratech\u2019s potential\u2019 &#8211; Economic Times<\/a><\/h3>\n<blockquote><p>Manoj Gaur, told ET  that he is confident about the strong fundamentals of the company. Excerpts:<\/p>\n<p>Are you disappointed with the stock\u2019s debut performance?<\/p>\n<p>We announced the pricing of the issue four weeks ago. Since then, the stock  market has come down by 10%. Keeping the overall weak sentiment prevailing in  global markets in mind, I think the stock performance was not bad. I am not  concerned with the debut performance of the stock, as I am certain about the company\u2019s strong fundamentals.             Jaypee Infratech is an infrastructure company with a real estate play. We reserve the rights to  collect toll for 36 years from the Yamuna Expressway, the road that links Delhi  to Agra.             Then, we have 500-million square feet of real estate. Of  this, 300 million in NCR. At a conservative price of Rs 3,000 a sq ft, we have a  real estate inventory of Rs 1.5-lakh crore. Very few companies in India have  this kind of cash-generation capacity. Also, we are exempted from tax in the  next 10 years.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Jaypee Infratech which is one of the low quality offerings (IPOs) to list in the Indian market fell 10% on the very day of the listing.This<span class=\"excerpt-hellip\"> [\u2026]<\/span><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","content-type":"","footnotes":""},"categories":[32,39],"tags":[3157,3267,4253],"class_list":["post-441","post","type-post","status-publish","format-standard","hentry","category-ipo-indian-capital-markets","category-real-estate-and-construction","tag-ipo-indian-capital-markets","tag-junk","tag-real-estate"],"_links":{"self":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/posts\/441","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/comments?post=441"}],"version-history":[{"count":0,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/posts\/441\/revisions"}],"wp:attachment":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/media?parent=441"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/categories?post=441"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/tags?post=441"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}