Indiabulls Power’s IPO 22 times oversubscribed

The Indian power developer’s maiden initial public offering met with strong response from institutional investors.

The initial public offering (IPO) of Indiabulls Power, a subsidiary of Indian conglomerate Indiabulls Group, has been oversubscribed nearly 22 times, according to data from the National Stock Exchange (NSE).

The issue met with strong response from institutional investors compared to the response from non-institutional investors such as corporates and high net worth individuals as well as retail investors. Approximately 51 percent of the issue allocated to institutional investors was oversubscribed 40 times. Non-institutional investors allocated about 12 percent of the IPO oversubscribed six times while retail investors oversubscribed once for the remaining 37 percent of the issue.

Indiabulls Power aims to raise up to INR15 billion ($322 million; €19 2million) from the issue, which will see a stake of roughly 17 percent of the company move into public hands.

The company’s successful IPO follows the IPOs of two other Indian power companies Adani Power and NHPC, which have raised a combined sum of INR90 billion from their maiden IPOs in the last three months. Similarly, Adani Power’s IPO was oversubscribed 22 times and NHPC’s IPO was oversubscribed 24 times.