Indiabulls Power, a subsidiary of Indiabulls Real Estate has fixed its initial public offering (IPO) price at Rs 45 per share, at higher end of price band of Rs 40-45, reports CNBC-TV18 quoting DowJones.
The issue opened for subcription during October 12-15 with 39.07 crore equity shares shares, including a green shoe option of retaining 5.09 crore equity shares.
It received an overwhelming response from investors, especially QIBs (qualified institutional investors) and was subscribed 21.84 times, as per the data available on the NSE website.QIBs (qualified institutional investors) supported the issue with their reserved portion being subscribed over 40.49 times. QIBs included Fidelity, Nomura, Capital International, Goldman Sachs AMC, Mirae AMC, Reliance MF, SBI, IDFC, LIC MF, HSBC, Halbis, Birla MF and ICICI Pru Life Insurance.
Non-institutional investors’ reserved portion got subscribed nearly 5.76 times and retail portion subscribed was 1.09 times.
Indiabulls Power intends to use the IPO proceeds to part finance the construction and development of the 1,320 MW Amravati Power Project Phase-I, fund equity contribution in the company’s wholly owned subsidiary, IRL to part finance the construction and development of the 1,335 MW Nashik Power Project, apart from general corporate purposes.
The company has five thermal power projects under development, which will have a combined installed capacity of 6,615 MW. Projects include -:
1 – Amravati Phase I Power Project will have two super-critical units of 660 MW each, with combined capacity of 1,320 MW.
2 – Nashik Power Project will consist of five units of 135 MW each and two units of 330 MW each, with a combined capacity of 1,335 MW.
3 – Bhaiyathan Power Project will have two super-critical units of 660 MW each, with combined capacity of 1,320 MW.
4 – Amravati Phase II Power Project will have two super-critical units of 660 MW each, with combined capacity of 1,320 MW.
5 – Chhattisgarh Power Project is expected to have two super-critical units of 660 MW each, with combined capacity of 1,320 MW.
Apart from these projects, the Company is developing four medium sized hydro-power projects of 60 MW, 30 MW, 46 MW and 31 MW in Arunachal Pradesh.
For the year ended March 31, 2009, it has reported profit of Rs 82.96 crore on total income of Rs 141.34 crore on the consolidated basis.
Morgan Stanley India Company Pvt Ltd was the book running lead manager and Karvy Computershare Pvt Ltd was the registrar to the issue.
The Company has certain foreign investors such as FIM Limited and LNM India Internet Ventures Limited as its shareholders.
Source : Money Control
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