The public issue of Adani Power Ltd (APL), which closed on Friday, got tremendous response from investors. The IPO subscribed 21.63 times and collected more than Rs60,000 crore in the process.
In a volatile equity market, the good show by the company has signalled a revival of the primary market. Many other power companies, including the NHPC, Indiabulls Power, and Sterlite Energy, are lined up to tap the markets to part fund their expansion plans.
The full market capitalisation of the APL comes to around Rs21,800 crore at the upper price band of Rs100 per share, the rate at which a large number of bids have been
received.
The shares of the company are likely to be listed on August 20. “As the issue has received overwhelming support from investors, I think the company will be listed with a hefty premium,” said Vaibhav Shah, MD, Monarch Projects & Finmarkets Ltd. “The shares will be profitable for long-term investors too.”
The performance of APL is in line with the group’s Mundra Port & SEZ IPO in 2008 which was subscribed 117 times and had collected around Rs2 lakh crore against the issue size of Rs1,770 crore.
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