Jaypee Infratech IPO just manages to scrape through at lower end of price band despite Nine I-banks selling it

The Junk Indian IPO  market is not having too much success.Most of  the low quality IPOs are managing to scrape through at just over one time subscription.Jaypee Infratech despite hiring 9 investment banks to sell its IPO just managed to get 1.2 times subscription . Moreover this was done at the lower end of the band . In my earlier post I mentioned that its tough if not impossible to value Indian real estate companies. Jaypee is no different because  the opacity and subjectivity in valuation of these real estate companies is too high. You should  expect a huge discount due to this uncertainity which investors were not getting in this IPO .

Note even the funnier case of “Tara Health Foods” . This cattle food company has managed to get subscribed by just 0.04 times despite extending the time and lowering the price band. I thought Tarapur Transformers was the lowest quality offering in recentimes t but this level of investor disinterest in Tara makes me suspect that the award for the lowest quality should go to this one.