Adani Power IPO oversubscribed
The initial public offer (IPO) of Adani Power Ltd, a subsidiary of Ahmedabad-based Adani Enterprises, has marked the return of the institutional investors’ appetite for public offers.business Updated: Jul 31, 2009 22:06 IST
The initial public offer (IPO) of Adani Power Ltd, a subsidiary of Ahmedabad-based Adani Enterprises, has marked the return of the institutional investors’ appetite for public offers.
Foreign institutional investors (FIIs), banks, insurance companies and mutual funds have responded overwhelmingly to Adani Power’s maiden issue, which closed on Friday. The company seeks to raise about Rs 2,500 crore from the offer, for which the price band was fixed at Rs 90 to Rs 100 per share. “The over subscription of the Adani Power IPO shows that investor appetite is definitely back especially in the QIB space. Lanco had also launched a QIB of Rs 750 crore on Thursday and even though it is much smaller in size compared to Adani Power, the response has been very good,” said Lalit Thakkar, director, Angel Broking.
The Adani Power issue received over 6.5 times subscription to its issue of over 24.87 crore shares, according the subscription figures available on the Bombay Stock Exchange website till 1800 hours. The response from retail investors to Adani Power IPO was lukewarm. Almost all the bids received were at the upper end of the price band, and a large part of it from long-term investors.
The company plans to list the shares on August 20.
“It is the appetite in the primary market that feeds the secondary market and vice-versa,” he said.