Indiabulls Power's IPO makes lacklustre debut on bourses
30 Oct 2009
Indiabulls Power's IPO opened to a lacklustre debut on the bourses on Friday even as the rest of the market staged a smart recovery on positive news from overseas cues.
The company which is a subsidiary of Indiabulls Real Estate had fixed a price of Rs45 per share at the higher end of the price band. It received a huge response from QIBs (qualified institutional investors) including Fidelity, Nomura, Capital International, Goldman Sachs AMC, Mirae AMC, Reliance MF, SBI, IDFC, LIC MF, HSBC, Halbis, Birla MF and ICICI Pru Life Insurance who bid for over 40 times the shares on offer.
HNIs subscribed to over 5 times the shares reserved for them but the retail investors mostly preferred to keep away barely picking enough stock to fully subscribe the portion meant for them.
The promoter's shareholding would come down to 59.18 per cent from the current 71.43 per cent following the issue.
According to the company's plans the IPO proceeds would go toward part-financing the construction and development of the 1,320-MW Amravati Power Project Phase – I and the 1,335 MW Nahsik Power Project.