The Rs 3,000-crore initial public issue of Adani Power Ltd was listed on the exchanges at a premium that was much below investor expectations. The shares were listed on National Stock Exchange (NSE) at Rs 108 compared to its issue price of Rs 100 per equity share, commanding a premium of only 8%.
Investors expected the stock to fetch a premium of around 12% to 15% and a further upside in intra-day trade. The stock touched a high of Rs 110 and soon hit a low of Rs 98.30 on profit-taking by investors before ending the trading session at Rs 100.10. Nearly 16.43 crore shares changed hands in NSE, clocking a turnover of Rs 1,663 crore. On Bombay Stock Exchange (BSE), the stock debuted with a lower premium of 5% at Rs 105 and ended the trading session at Rs 100.05 after touching a high of Rs 107.90.
?Investors had expected significant premium on the listing day. However, the market sentiments in the last two trading sessions dented the overall sentiments,? said Ambareesh Baliga, vice-president, Karvy Stock Broking.
He added that from a long-term perspective, the stock looks attractive since the power sector has high growth potential.
“The listing was a big disappointment for investors. The issue price was fixed at the upper end of the price band and there was little room left for the investors to make profits,?said the head of equity research at a domestic brokerage house, who did not wish to be named.
The Adani Power IPO received an overwhelming response from investors, getting subscribed by 21.59 times with the portion reserved for qualified institutional bidders category getting subscribed by 39.48 times.
One day prior to the issue, 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.
These investors 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.
This is the first public issue that had offered as per Securities and Exchange Board of India (Sebi) prescription a minimum 30% of the portion reserved under the qualified institutional buyers (QIB) to anchor investor, after the guidelines came into force.