The Hindu Business Line : Indiabulls Power IPO subscribed 6 times on first day

Mumbai, Oct. 12 The initial public offering of Indiabulls Power, a subsidiary of Indiabulls Real Estate, was subscribed close to six times on the first day of its offering. The 39.07-crore issue, which opened on Monday, received bids for 165.6 crore shares.

The issue was subscribed four times in the first 10 minutes.

The portion reserved for the retail investors was not subscribed 0.37 times at the end of the day. The portion reserved for the HNIs was subscribed two times. The portion for qualified institutional buyers was subscribed 10.8 times.

Close to 18 per cent of the issue was subscribed by eight anchor investors. Copthall Mauritius Investments, BNP Paribas Arbitrage, Credit Suisse Singapore and Macquarie Bank are among the anchor investors who subscribed to 6.1 crore shares.

The anchor investors subscribed at Rs 45 a share. Close to Rs 246 crore was raised through the anchor investors.

The price band for the issue was fixed at Rs 40-45. The issue will close on October 15. The company is looking to raise Rs 1,758 crore.

The offer excludes a greenshoe option of 50.9 million shares. The company, which is in the process of developing four power projects, will dilute 16.98 per cent of its post-issue paid-up share capital and 19.04 per cent if the greenshoe option is exercised.

The proceeds from the issue will be used to part finance the construction and development of its power projects in Amravati and Nashik.

Power projects

According to the company’s draft prospectus, the company plans to utilise Rs 1,435 crore from the issue proceeds to finance these projects. The company will also use the proceeds towards general corporate purposes.

Indiabulls Power IPO is the first public issue to hit the market after the Chennai-based Thinksoft Global issue’s price band was revised lower and the closing date extended.

The other power companies that raised funds recently did not fare well in the market.

Adani Power, which was subscribed 22 times, closed at Rs 101.95 on the BSE, compared with the IPO price of Rs 100 a share. NHPC, which was subscribed 23.7 times, ended the day at Rs 33 – below the issue price of Rs 36.

Meanwhile, Indiabulls Real Estate informed the BSE that UK-based Sloane Robinson LLP – an investment manager of various entities including Essar Investment Services Ltd – has bought 0.50 per cent stake in the company through open market transactions.