Adani Power Ltd (APL), part of the Adani group of companies, is planning to launch its initial public offering (IPO) on July 21 at a price of Rs 130 per share. Sources suggest that APL is aiming to collect over Rs 2200 crore through the IPO, which will be used to part-fund its projects.

Adani Power has submitted its draft red herring prospective with the SEBI, and the regulator sent its observations to the company last week. APL is expected to get the approval soon.

"SEBI has given the final observation and we have replied so it is final, approval will come soon," said Ameet Desai, Director, Adani Power.

Adani Power in Mundra is setting up its largest power plant of 4620 MW of capacity with over Rs 20,000 crore of investment, which is larger than an Ultra Mega Power Project. It is expected to be completed by March 2012.

The fund will be utilised for the development of Mundra project as well as the Tiroda power plant in Maharashtra, resulting in generation of 6500 MW of power. The total capex is estimated at Rs 28,369 crore for which Rs 22,676 crore of debt has been tied up.

Adani Group currently holds over 85 per cent stake in Adani Power and after the public issue the promoter stake will be reduced to 73 per cent. Group's Mundra port which is a few kilometers away will help in importing coal for the power project.

"We will get 55 per cent of coal from overseas, Indonesia and 45 per cent of the coal will be from the dometic coal linkages," said Desai.

It is going to be the largest IPO in the recent times since the stock market has recovered from the fall last year. It also signals a renewed boom in the power IPOs which were lining up earlier last year.