"Predominantly qualified institutional buyers have subscribed to the offer and interest from retail and HNIs are expected towards the end of the book building process, who are still waiting in the sidelines," SMC Capitals Equity Head Jagannadham Thunuguntla said.

1. Adani Power IPO opens with a bang; subscribed 4 times
Press Trust of India
Tuesday, July 28, 2009 (Mumbai)
The initial public offer of Adani Power got subscribed nearly four times the shares on offer within an hour of start of
the book building process on Tuesday.
The issue received bids for over 94.91 crore shares against 24.87 crore shares on offer, as per the data available on
the National Stock Exchange.
The company has fixed a price band of Rs 90-100 per share and most of the bids came in at Rs 95.
Adani Power, the electricity generating unit of Adani Enterprises, plans to raise Rs 3,610 crore at the upper end of the
price band and Rs 2,715 crore at the lower end.
This is the first issue wherein anchor investors, strategic investors for whom bidding process is carried out one day
before the issue opens, have participated. As many as 13 anchor investors, including Credit Suisse, Sundaram BNP
Paribas, T Rowe Price and CLSA, subscribed to the IPO at Rs 95 per share, the data showed.
Market regulator SEBI last month allowed new class of entity – anchor investors – to pick up a maximum of 15 per
cent of the total IPO size.
"Predominantly qualified institutional buyers have subscribed to the offer and interest from retail and HNIs are
expected towards the end of the book building process, who are still waiting in the sidelines," SMC Capitals Equity
Head Jagannadham Thunuguntla said.
The company plans to deploy Rs 2,193 crore of the issue proceeds for funding its projects, while the balance would
be utilised for general corporate purposes.
The company is diluting 13.47 per cent stake to public shareholders. The promoter group, including Adani
Enterprises, holds 85.3 per cent stake in Adani Power and UK private equity firm 3i Group Plc holds 8.55 per cent.
Post IPO the holding of Adani Enterprises would come down to 73.5 per cent while 3i Investment would hold a 7.37
per cent stake in the company.
The IPO will close on July 31. Enam Securities, JM Financial Consultants, ICICI Securities and SBI Capital Markets
are acting as lead managers for the issue.

2. The Indian IPO market is back on track after over a year with the Adani Power IPO, which the second biggest after
Reliance Power. Last year in January Reliance Power had raised about Rs 11,000 crore, which was the biggest-ever
IPO in the country's history.
"Since the Adani Power IPO is being brought about by a big business house, a lot of investors are keeping their
money aside to invest in it after the pre-IPO placement garnered a good response," Thunuguntla added.