Thursday, July 30, 2009

Adani Power IPO over-subscribed 4 times on debut

ipo adani power

Adani Power initial public offering (IPO) witnessed huge investor interest and was subscribed 4.55 times on the second day of subscription. The issue received bids for 1,13,15,07,130 shares as against the issue size of 30,16,52,031 shares, as per the data available on the NSE website.

Till yesterday, qualified institutional investors had given strong response to the issue followed by non-institutional investors. Their portion subscribed 7.5 times and 2.1 times, respectively.

The price band has been fixed between Rs 90 and Rs 100 per equity share. The minimum bid lot has been fixed at 65 equity shares by the company in consultation with the global coordinator and book running lead manager. The issue will close on July 31, 2009.

The issue constitutes 13.84% of the post-issue paid-up equity share capital of the company. The issue includes a reservation of up to 8,000,000 equity shares for eligible employees. The issue less the employee reservation portion comprises a net issue of 293,652,031 equity shares. The net issue will constitute 13.47% of the post-issue paid-up equity share capital of the company.

The company intends to utilize the net proceeds of the issue to part finance the construction and development of Mundra Phase IV Power project for 1,980 MW and fund equity contribution in its subsidiary, Adani Power Maharashtra Limited, to part finance the construction and development cost of power project for 1,980 MW at Tiroda, Maharashtra.

The equity shares offered through the red herring prospectus dated July 14, 2009, of the company are proposed to be listed on the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited.

The global coordinator and book running lead manager for the issue is DSP Merrill Lynch Limited. Book running lead managers for the issue are Enam Securities Private Limited, IDFC-SSKI Limited, JM Financial Consultants Private Limited, Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, ICICI Securities Limited and SBI Capital Markets Limited.

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