Power utility firm Adani Power Ltd has fixed the issue price of its initial public offer (IPO) at the upper end of the price band at Rs 100 per equity share. The price band was between Rs 90 and Rs 100 per equity share. The Rs 3,000-crore issue, which was the largest offering in the last 18 months, received an overwhelming response from investors. It was subscribed 21.64 times, setting the tone for a revival in the primary market.
The largest issue to hit the primary market in recent times was that of Reliance Power Ltd, which was subscribed over 10 times and raised more than Rs 11,000 crore during January 2008.
?Even with the issue price being fixed at Rs 100, the investors are the beneficiaries as the net asset value of the company is Rs 105 per share. Moreover, already 330 mega watt of power capacity has gone live while a target of 1320 mw has been set by the end of this financial year. So this is a good issue for investors at Rs 100 per equity share,? Deven Choksey, managing director, KR Choksey Securities.
The issue received huge interest especially from the institutional investors with the portion reserved for the qualified institutional buyers (QIB) portion getting subscribed by 39.47 times. One day prior to the issue hitting the market six major institutional investors had subscribed to Rs 502 crore worth of shares set aside for the anchor investors for Rs 95 per share. These investors included T Rowe Price International, AIC Advantage Fund, Ecoffin Global Utilities Masters Fund Ltd, Sundaram BNP Paribas Mutual Fund, CLSA Mauritius Ltd and Credit Suisse Ltd.