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Indiabulls power ltd.

(IPL) has come up with its (IPO) initial public offering to fund its major
projects in the field of power generation The company has five thermal power projects under
development, which will have a combined installed capacity of 6,615 MW. Amongst them are,
the construction and development of the 1,320 MW Amravati Power Project Phase – I (Rs 775
crore from the issue) and 1,335 MW Nashik Power Project (Rs 660 crore from the issue). Apart
from these IPL has various other projects in pipeline such as Bhaiyathan Power Project,
Amravati Phase II Power Project, Chhattisgarh Power Project and some of them in advanced
stages.

The IPO of 390, 700,000 equity shares will open for subscription on 12th October and ends on
15th October.

For the year ended March 31, 2009, it has reported profit of Rs 82.96 crore on total income of
Rs 141.34 crore on the consolidated basis.

“At the higher end of the band, IPL is expected to be valued at 2.1xFY12E to post-issue book
value. We value IPL’s 5295MW on DCFE basis at Rs 37 and have given a 25% premium to
capture the value of future projects, to arrive at Rs 46 per share value. We would recommend
'Subscribe' for listing gains.”

Going further, Crisil has rated IPL(Indiabulls Power Ltd) 3/5 for its IPO based on the
fundamentals which certainly indicates a neutral valuations. Given the brand name and the
management abilities it would be worth buying this stock or applying for IPO as it looks fairly
priced. But given the current market volatility where large IPO’s Like NHPC and OIL INDIA have
failed to achieve significant returns since listing.

Company Issue price High CMP
Oil 1050 1210 1195
India
NHPC 36 42 33.05
Adani power 100 110 101.25
* CMP as on 9-Oct-2009

Therefore recent IPO’s from energy and power sector has not been too
attractive in terms of returns.

Considering this situation we would suggest the investors to go for Indiabulls Power Ltd. IPO
With medium term to long term view as most of the projects are in advanced stages and the
valuations look very attractive considering its 2012-2013 earnings
Below are the fundamentals of IPL.

Price Band Rs40 to 45
Crisil IPO Grading 3/5
Opening Date October 12, 2009
Closing Date October 15, 2009
BRLM Morgan Stanley
Issue Size (Rs bn) excluding GSO Rs 13.6-15.3
Pre-issue equity 1659.00
Fresh Issue 339.8
Employee Reservation 0.00
QIBs 203.88
Retail 101.94
Non-institutional 33.98
Post-issue equity 1998.8
Green-shoe option (GSO) upto 50.9
Post-issue equity with GSO 2049.7

Share Holdings

Share Holdings Pre issue (%) Post Issue (%)
Promoter group 71.4 57.8
Foreign Investors 28.6 23.1
Public - 16.6
GSO - 2.5

Key Financial FY 09 FY 10E FY 11E FY 12E
EBITDA (Rs m) (195) (210) (264) (354)
PAT (Rs m) 831 715 539 (393)
EPS (Rs) 1.0 0.4 0.3 (0.2)
Growth (%) 346.9 (64.3) (24.6) -

Profitability & Valuation

Profitability & FY 09 FY 10E FY 11E FY 12E
Valuation
RoE (%) 3.8 2.1 1.2 (0.9)
RoCE (%) 4.1 2.2 1.6 1.2
P/ BV (x) 1.6 2.0 2.0 2.1
PE (x) 44.9 125.8 166.7 -

Before buying or renew any Insurance or Investment Plan like Term,chidren
future, pension,Health,Fixed Deposits etc… call once for comparison of all
product and save money and get a higher benefit.

For Further Details kindly Contect :

Thanks and Regards,
Kirang Gandhi
Corporate Financial Planner
www.kgandhi.anindia.com
m-9271267305