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| Adani Power lists at 5% premium |
| BS Reporter / Mumbai Aug 21, 2009, 00:26 IST |
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Adani Power had a dull debut on the Bombay Stock Exchange today, with the stock listing at just a 5 per cent premium over its issue price of Rs 100. The stock closed barely above its price band at Rs 100.05, disappointing many market players who had expected the company’s listing to be a stellar affair.
Adani Power’s Rs 3,000 crore initial public offer (IPO) was subscribed 21.52 times.
The issue, which saw participation by 13 anchor investors including Credit Suisse, Sundaram BNP Paribas and T Rowe Price, slid on selling by retail and high networth individuals (HNIs).
On the National Stock Exchange, the stock listed at Rs 108, a premium of 8 per cent.
“The issue was not overpriced, but both retail investors and HNIs who had invested through margin funding exited the stock on listing,” said independent equity advisor S P Tulsian.
Margin funding was provided by broking houses to investors for this issue. The annual interest rate being charged was 12 to 13 per cent for 15 to 20 days.
Some experts were of the view that the issue was aggressively priced. “This IPO was fully priced and not a good bet for those looking for listing gains,” Dinesh Thakkar, managing director, Angel Stock Broking, said. The broking house had put a fair value of the stock at Rs 82.
The stock touched a high of Rs 107.90 and a low of Rs 98.50 on BSE and generated a combined volume of 260.72 million — the highest at both the exchanges.
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