The Rs 3,000-crore initial public offering (IPO) of Adani Power Ltd got over-subscribed 21.51 times on the last day of its subscription, setting the tone for the revival in the primary market. The issue received total bids for 5,351.65 million shares against the issue size of 248.79 million shares out of which 213.06 million bids were at the cut-off price. The price band for the issue has been fixed between Rs 90 and Rs 100.
According to investor bankers associated with the issue, the qualified institutional buyers (QIB) portion got subscribed by nearly 40 times, retail category by nearly 3 times and High Networth Investors by around 9 times.
Interestingly, it is the response shown by the institutional investors that set a positive sentiment towards the issue.
On Monday, as many as six anchor investors had picked up the entire portion reserved under the anchor investor scheme for Rs 502 crore at Rs 95 per share.
This is the first public issue that had offered the Sebi-prescribed minimum 30% of the portion reserved under the QIBs to anchor investors after the guidelines came into force. Anchor investors in the issue include 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.
?The success of the Adani public issue has proved that there is a market with ample liquidity for an issue with a good track record and at the same time, reasonably priced. This should motivate other companies to follow,? said Prithvi Haldea, managing director, Prime Database.
Amitabh Chakraborty, president (equity), Religare Capital Markets, said, ?Seeing the strong response from all categories of investors, we could sense that there is a strong appetite in the primary market for good issues?.