Adani Power to list on 20 August 2009

The IPO was priced at Rs 100 per share

Power generation firm Adani Enterprises will debut on bourses on Thursday, 20 August 2009. The shares of the company would be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

The company had priced its initial public offer (IPO) at Rs 100 each, at the top end of Rs 90 to Rs 100 price band. The IPO received strong investors response. The overall book was covered 21.6 times. The offering represents 13.8% of the fully diluted post-issue equity share capital.

The qualified institutional investors segment was subscribed 39.4 times covered, the category comprising high networth individuals and corporates was subscribed 8.6 times and the retail investors segment was subscribed nearly 3 times.

Adani Power was the first Indian company to use new rules that allow companies to sign up anchor investors through a bookbuilding process, one day before the formal order taking starts. The company has allocated 5.28 crore shares at Rs 95 per equity share (at the mid-point of the price band) to six different anchor investors, some of which will take shares through several sub-funds in anchor portion of the Adani offering. The six buyers are: Ecofin, AIC Advantage Fund, CLSA, T Rowe Price International, Sundaram BNP Paribas Mutual Fund and Credit Suisse.

As per Securities and Exchange Board of India (Sebi) norms, there is a 30-day lock-in for anchor investors.

The proceeds of the IPO will be used to partly finance the construction and development of its coal-based power projects at Mundra in Gujarat and Tiroda in Maharashtra. Post listing, promoter Adani Enterprises will hold about 73.5% in the power firm.

Adani Power is implementing two thermal power plants in Mundra in Gujarat and Tiroda in Maharashtra. It has signed power purchase agreements with Haryana, Maharashtra and Gujarat governments for selling power from the 2,000 megawatt Mundra and 1,320 megawatt Tiroda projects. The company also proposes to set up a 1,320- megawatt plant in Rajasthan and another 1,980 megawatt project at Dahej in Gujarat.

Currently, Adani Power has no operational power plant except the modest 330-MW unit I of Mundra Power Project (MPP)'s phase I, synchronized in May 2009. All others are either under execution or on the drawing board. This Unit I of MPP is expected to go on stream this month and the revenue generation is expected thereafter.