Adani Power IPO receives overwhelming response

The initial public offer (IPO) of Adani Power received an overwhelming response from the market with the issue being subscribed 21.51 times. The issue, which closed on Friday, offered 248.8 million shares.

The Qualified Institutional Buyer (QIB) portion was subscribed 39.44 times, the High Networth Individual (HNI) portion was subscribed 8.5 times and the retail segment was subscribed 2.75 times.

The IPO had six anchor investors – T Rowe Price, AIC, Ecofin, TPG (through CLSA), Legg Mason and Sundaram MF – which bid for 94 million shares against 52 million shares that were allocated for that sector. Anchor investors are the qualified institutional investors for whom the bidding process is carried out a day before the issue opens.

The price band for the IPO was fixed at Rs 90-100 and received 232.50 million bids at the cut-off price.  The company hopes to mop up Rs 3,160 crore at the upper end of the price-band.

The Adani Power IPO is touted as the biggest initial offering to hit the market in the last 18 months. The shares of Adani Power will be listed on the bourses on August 20, 2009.

The company intends to utilise the net proceeds of the issue to part fund the construction and development of 1,980 MW Mundra Phase IV Power project and to part finance the construction and development cost of power project for 1,980 MW at Tiroda, Maharashtra.