Adani Power IPO disappointed investors

by khalid on 21/08/2009 · 0 comments

adani power

India’s first large IPO in 18 months, disappointed investors as on the day of opening it was just at par and all the hope and predictions of analysts was vanished. Everybody was hoping to get a 10 to 12 rupees premium but surprised to see the prformance of the share.

Adani Power, which raised $630 million in the IPO was almost reminiscent of the stock market debut by Reliance Power, which raised almost $2.9 billion in India’s largest-ever IPO in early 2008 but has not closed above the issue price.

NHPC Ltd, which raised $1.25 billion earlier this month in an IPO that was subscribed nearly 24 times, is expected to list in early September and now there is a doubt about its successful listing. Apart from this other state-run firm Oil India which is eyeing a $500-$600 million IPO in September will have a doubt over its success.
This is not a good sign for forthcoming issues of companies including at least a dozen government firms are eyeing share sales to fund expansion in Asia’s third-largest economy.

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