Intra-day, the stock managed to touch a high of Rs 234.80 but soon slipped to the low of Rs 176 due to intense selling pressure. It closed the day at Rs 191.75 with the declines of Rs 20.10 per cent or Rs 48.25. Over 1.2 crore shares were traded on NSE while 99.26 lakh shares were traded on the BSE. The company had come out with an IPO of 3.46 crore equity shares of Rs 10 each for cash at a premium of Rs 240 through 100 per cent book-building process.
At Rs 240, the company is valued at Rs 830 crore.
KSK is a captive power producer with three operational power plants and capacity of 144 mw. Currently, KSK has financial closures for incremental capacity of 2,648 mw (both equity and debt). During the financial year 2008, it earned adjusted net profit of Rs 46 crore with 97 mw being operational on weighted average basis.
On comparison, Gujarat Industries Power Company Ltd and National Thermal Power Corporation are valued at a price to earnings of 11.9X and 17.6X for financial year 2008 respectively. Against this, KSK is valued at 196.1X for the same year & commands a price to earnings of 4.6x post IPO book value, with a return on earnings of 10.9%, at the upper-end of IPO price band.