Adani Power IPO subscribed 3.96 times on Day 1
Adani Power IPO today received an overwhelming response. The issue was subscribed 3.96 times in the first day, till 5 PM as per data from BSE.
The issue has so far received bids for 984.90 million shares as against the issue size of 248.79 million shares.
It should be noted that maximum bids have been received at the higher end of the price band. The issue was priced in the range of Rs 90-100 per share.
The company planned to raise Rs 3,000 crore via its initial public offering (IPO) of 301.65 million shares. The raised funds will be utilize by the company to part finance the construction as well as development of Mundra Phase IV power project for 1,980 MW and to fund equity contribution in its subsidiary - Adani Power Maharashtra.
The issue has been graded by Credit Rating agency, ICRA Limited an IPO Grade 3, indicating average fundamentals compared with its peers.
SP Tulsian, a well-know stock analyst, has stated in an interview that considering all fact of issue, it looks good and recommended even at the upper band of Rs. 100, as power sector holds good long term potentials to reward the shareholders.
The equity shares are proposed to be listed on the NSE and the BSE, and DSP Merrill Lynch is global coordinator as well as book running lead manager for this issue.
