Adani Power IPO to sizzle capital mkt this week

The Indian primary market is back on track and Adani Power's Rs 3,000 crore IPO -- the second-biggest ever public offer -- this week is likely to sizzle it further.

The IPO of Adani Power, promoted by the owners of Mundra Port & SEZ, opens on June 28 and plans to mop up to Rs 3,016 crore from the primary market. This is the second-biggest in country's history after Reliance Power.

So far this year four companies have hit the primary market but the IPO of Mahindra Holidays & Resorts enthused the corporate world to raise funds from the capital market.

The issue of Mahindra Holidays was over subscribed nearly 10 times and the company mopped up Rs 301 crore from the primary market.

"The Indian IPO market is mostly back on track after a hiatus of over a year. Foreign investors are showing confidence by subscribing to the securities and the fund raising by India Inc is gaining strength.

"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. FIIs are also showing confidence and investing in big issues," SMC Capitals Equity Head Jagannadham Thunuguntla said.