Adani Power may surge 10-30% over issue price on listing day
Press Trust of India / New Delhi August 19, 2009, 17:08 IST
Adani Power, whose initial public offer (IPO) lit up the country's primary market space with good response from
investor, is expected to surge in the range of 10-30 per cent over its issue price of Rs 100 when the company lists its
shares on bourses tomorrow, experts say.
"The pricing of the IPO was good and the issue received overwhelming response. If the movement in the broader
market remains favourable, the scrip is likely to gain 10-30 per cent in its debut trade tomorrow," primary market
tracking firm Prime Database CEO Prithvi Haldea told reporters.
Adani Power, which came out with an IPO of 24.88 crore shares last month, received bids for over 535 crore shares
on offer in the price band of Rs 90-100 a piece.
The company would list 218 crore shares at a issue price of Rs 100 a piece on the bourses tomorrow.
"There is a lot of unsatisfied demand in the market and investors would queue up to buy the shares on the first day,"
Haldea noted.
The IPO of electricity generating unit of Adani Enterprises, got subscribed nearly 22 times the shares on offer. The
company raised Rs 3,016 crore through the IPO.
"Considering the huge response received in the IPO, the company has fixed the issue price at the higher end of the
price band. I do not see any reason why it will not be listed at a premium," SMC Capitals Equity Head Jagnnadham
Thunuguntla said.