Selling continues in Indiabulls Power after dismal debut

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FOREIGN FUNDS NET SELL RS.463.89 CR IN EQUITIES ON NOVEMBER 20 (PROV)
MUTUAL FUNDS NET SELL RS.176.7 CR IN EQUITIES ON NOVEMBER 19
DII'S NET BUY RS.18.46 CR IN EQUITIES ON NOVEMBER 20 (PROV)
TO ENTER INTO CUSTOMIZED MOTOR CYCLE BIZ VIA PRO-BIKING SHOWROOMS
TO EXPAND PANTNAGAR CAPACITY TO 70,000 UNITS IN NEXT FEW MONTHS
AKER IS A NORWEGIAN SERVICE PROVIDER CO FOR OIL AND GAS OPERATIONS
AKER SOLUTIONS TO PROVIDE SUPPORT SERVICES IN KG BASIN
AKER BAGGED SUB SEA PRODUCTION ORDER FROM RIL IN 2006 ALSO
RELIANCE IND PLACES RS.115 CR ORDER WITH NORWAY'S AKER SOLUTIONS
PORTING CHARGES TO BECOME APPLICABLE FROM DECEMBER 31, 2009
MNP ALLOWS USERS TO CHANGE OPERATORS WHILE RETAINING MOBILE NOS
USERS TO PAY MAX OF RS.19 TO CHANGE OPERATOR WHILE RETAINING OLD NUMBER
TRAI COMES OUT WITH NUMBER PORTABILITY CHARGES
PUNJAB NATIONAL BANK PLANS TO RAISE RS 700 CR BY SELLING BONDS
TATA TELE-QUIPPO OFFERING BETTER SERVICING DEAL FOR TOWERS: SOURCES
GTL BID 10-15% HIGHER THAN TATA-QUIPPO: SOURCES
DEAL VALUED AT AROUND RS.6000 CR : SOURCES
MAY JOIN RACE FOR SHELL'S EUROPEAN REFINERIES: SOURCES
SENSEX, NIFTY UP 1% EACH FOR THE WEEK
CNX MIDCAP INDEX UP 1%, BSE SMALLCAP INDEX UP 1.6%
METAL INDEX UP 3.7%, AUTO INDEX UP 2.3%, FMCG UP 1.5%
INDEX GAINERS: SUZLON UP 9.3%, TATA STEEL UP 6.3%, SAIL UP 5.3%
APPROACHED SHELL FOR BUYOUTS BEFORE ESSAR'S EXCLUSIVE TALKS BEGUN
ESSAR-SHELL IN EXCLUSIVE NEGOTIATIONS TILL NOV 30 TO BUY 3 SHELL REFINERIES
RIL SPOKESPERSON: 'WE ARE REVIEWING A NUMBER OF GLOBAL OPPORTUNITIES'
RIL SPOKESPERSON TO NDTV: 'REVIEWS CANNOT ASSURE TRANSACTIONS'
JSW ENERGY ALSO IN RACE FOR ANDREW YULE'S DPSC STAKE: NW
CESC, SREI INFRA IN RACE FOR ANDREW YULE'S DPSC STAKE: NW
GAMMON INFRA BAGS NHAI PROJECT WORTH RS.850 CRORES
NET PROFIT AT RS.48.2 CR VS RS.12 CR; SALES UP 55% AT RS.849 CR (YOY)

Updated: 03/11/2009 | 12:00 AM IST

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Tuesday, November 03, 2009 (New Delhi)

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Meanwhile, the BSE Sensex was up 34.74 points, or 0.22%, to 15931.02.

The Indiabulls Power counter clocked 44.7 lakh shares on the BSE. The stock hit a high of Rs 39.25 and a low of 36.55.

The stock is currently trading at 17.88% discount over the initial pubic offer (IPO) price of Rs 45.

Shares of Indiabulls Power had closed at Rs 39.25 on the first day of its listing on 30 October 2009, a 12.80% discount over the initial public offer price of Rs 45.

On that day, Copthall Mauritius Investment had bought 1.23 crore shares of Indiabulls Power from open market operations at Rs 39.68. HSBC Global Investment Funds Mauritius had bought 2.55 crore shares of the company at Rs 40.08. Both the transactions took place on the NSE.

The company had fixed its initial public offering (IPO) price at the top end of the IPO price band of Rs 40-45. The IPO, which closed on 15 October 2009, ended with 21.84 times oversubscription. The IPO garnered bids for 608.62 crore shares as against 27.86 crore shares on offer.

The issue saw high demand from qualified institutional buyers, with the category getting subscribed 40.49 times. The non-institutional investors' category was subscribed 5.76 times, while the portion reserved for retail individual investors was subscribed 1.09 times.

Indiabulls Power issued a total of 39.07 crore shares in a price band of Rs 40-45 per share in the IPO, which remained open between 12 and 15 October 2009.

On 9 October 2009, Indiabulls Power sold the maximum allowed 30% of the tranche reserved for qualified institutional buyers (QIBs), or 18% of the total IPO, to the eight anchor investors at a price of Rs 45 a piece.

Approximately 2.1 crore shares, or 34% of the shares available to anchor investors went to Copthall Mauritius Investment, while BNP Paribas and the Nomura India Investment FundMother Fund (together with a trust company) bought 1.05 crore and 1.08 crore shares respectively. The other anchor investors were Indea Capital, the Norwegian government petroleum fund, Credit Suisse Singapore and Macquarie Bank.

Indiabulls Power, a subsidiary of Indiabulls Real Estate, has been established with the objective to develop, construct and operate power projects. Currently, the company has no operational power plant. The first unit will be operational only by June 2012.

The company is currently executing five coal based power projects totalling 6,615 megawatt (MW) generation capacities. The company proposes to set up power plants in Maharashtra (Amravati and Nashik) and Chhattisgarh (Bhaiyathan). The management has indicated that the first power plant would be commissioned at Nashik in 2011-12.

The proceeds of the proposed IPO will part finance the construction and development of the 1,320 MW Amravati Power Project Phase I, fund equity contribution in the company's wholly owned subsidiary to part finance the construction and development of a 1,335 MW Nashik Power Project, apart from general corporate purposes.

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