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Submitted to: Mr. Anoop Mohanty Submitted by; Mohammad Abbas Roll No. RS-1904A24 10906034
Adani Power Limited, a subsidiary of Adani Enterprises Limited, is developing number of power projects along with its dedicated transmission station system. Presently, Adani Power Limited is setting up a 4620 MW Mundra Thermal Power Station in following stages: • Stage 1: 660 MW • Stage 2: 660 MW • Stage 3: 1320 MW • Stage 4: 1980 MW APL is presently executing 400 KV D/C transmission line of about 431 KM distance from Mundra to Dehgam. APL is also executing ±500 KV Bi-Pole HVDC transmission line of about 800 KM distance from Mundra to Haryana for transmitting 2500 MW. Adani Power Maharashtra Limited (APML), a 85.89% subsidiary of Adani Power Limited is implementing 1980 MW Thermal Power Station in following stages: • Stage 1: 1320 MW • Stage 2: 660 MW What is an IPO? An initial public offering (IPO), referred simply as an "offering" or "flotation", is when a company (called the issuer) issues common stock or shares to the public for the first time. They are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately-owned companies looking to become publicly traded. In an IPO the issuer may obtain the assistance of an underwriting firm, which helps it determine what type of security to issue (common or preferred), best offering price and time to bring
it to market. An IPO can be a risky investment. For the individual investor it is tough to predict what the stock or shares will do on its initial day of trading and in the near future since there is often little historical data with which to analyze the company value. IPO of Adani Power LTD.;The Company intends to utilize the Net Proceeds of the Issue to part finance the construction and development of Mundra Phase IV Power Project for 1,980 MW and fund equity contribution in its Subsidiary, Adani Power Maharashtra Limited, to part finance the construction and development cost of power project for 1,980 MW at Tiroda, Maharashtra.
Objectives of the Adani Power IPO
Adani Power is getting in the IPO to raise funds primarily for the following: 1. Finance the Mundra Phase IV 1980 MW Power Project partly 2. Fund the subsidiary that will engage in the construction and development of the 1980 MW Tiroda Power Project.
Basis of allotment ;1-
The company planned to raise Rs 3,000 crore via its initial public offering.
The Issue would constitute 13.84% of the post-issue paid-up Equity Share capital of the Company.
Adani Enterprises Limited is undertaking an initial public offering of 301,652,031 Equity Shares of Rs. 10 each for cash at a price to be decided through a 100% book-building process.
The Issue includes a reservation of up to 8,000,000 Equity Shares for Eligible Employees.
The Issue less the Employee Reservation Portion comprises a Net Issue of 293,652,031 Equity Shares.
The Net Issue will constitute 13.47% of the post-issue paid-up Equity Share capital of the Company.
Open DateOpening date was July 28, 2009.
Closing date ;The Bid/ Issue was closed on July 31, 2009. Book Running Lead Manager IDFC - SSKI Limited ,Kotak Mahindra Capital Company Limited ,SBI Capital Markets Limited,JM Financial Consultants Private Limited,ICICI Securities Limited,Enam Securities Private Limited,Morgan Stanley India Company Private Limited,DSP Merrill Lynch Limited (Global CoType of Securities Type of Issue ordinator) Equity --
Issue Size Book Building Size (Rs.) Face Value (Rs.) Floor Price (Rs.) Tick Size Book Building Start Date Book Building End Date Fixed Price Portion Start Date Fixed Price Portion End Date Issue Price (Rs.) Listed Date What is the issue price ;-
248794681 -Rs. 10.00 Rs. 90.00 Rs. 1 28 Jul 2009 31 Jul 2009 --Rs. 100.00 20 Aug 2009
Issue price of the share is Rs. 100. Issue Highlights Start Date End Date Issue Size Security 28 Jul 2009 31 Jul 2009 248794681 shares Type Equity
Face Value (Rs.) 10.00
Price Band (Rs.) 90.00 - 100.00
What is the price band ;The price band of IPO is 90 – 100.
Quantity of Share ;-
Adani Power Ltd. Was issuing 248794681 share with face value of Rs. 10. Underwriters;The BRLMs and the Syndicate Members
Domestic Legal Counsel to the Underwriters Khaitan & Co. Meher Chambers 4th and 5th Floor R.K. Marg Ballard Estate Mumbai 400 001 Tel.: (91 22) 6636 5000 Fax.: (91 22) 6636 5050 International Legal Counsel to the Underwriters Jones Day 30 Cecil Street # 29-01 Prudential Tower Singapore 049712 Tel.: (65) 6538 3939 Fax: (65) 6536 3939 Adani Power Ltd IPO details 1) 2) 3) Public Issue Open: July 28 ,2009 to July 31, 2009 Public Issue Type: 100% Book Built Issue (Initial Public Offer IPO) Public Issue Size: 301,652,031 Equity Shares of Rs. 10/-
4) 5) 6) 7)
Minimum Market Lot: 65 Shares Public Issue Price: Rs 90/- to Rs 100/Maximum Subscription Amount for Retail Investor: Rs 100,000/Listing: BSE, NSE Lead Manager: DSP Merrill, Enam, IDFC-SSKI Ltd, ICICI Securities, JM Financial, Kotak Mahindra, Morgan Stanley, SBI Capital. Registrar: Karvy Computer share Pvt Ltd
Grey Market Premium: 20-30 Rs.
10) Expected Allotment Date: 10-Aug-2009 11) Expected Refund Date: 13-Aug-2009
Capital Structure;Capital Structure Period Instrument From To
Authorized Capital (Rs. cr)
Issued Capital (Rs. cr)
-PAIDUPShares (nos) Face Value Capital
2009 2010 Equity Share 214.75
Grading ;The issue has been graded by Credit Rating agency, ICRA Limited an IPO Grade 3, indicating average fundamentals compared with its peers.
Future prospects of the company ;•
As we all know that India is facing shortage of power (electricity) so we can say that the company will perform better in the future and it will be the attractive reason for the investors to invest in the company.
Adani Power is located in the western region and has got a locational advantage; both in terms of sourcing as well as distribution. The power plants are located in the rapidly industrializing areas of Maharashtra and Gujarat and will benefit from the growth of these states. So this would be the reason for investors to invest in the company.
Response of the stock market after issuing IPO of Adani Power LTd. The sensex was on 27th july 18077 before issuing the IPO but when the company issue IPO then on 29th july sensex was 17950.
News about the IPO of Adani Power Ltd. ;-
1. Adani Power IPO subscribed over 21 times /Times of india AHMEDABAD: The Adani Power Ltd IPO closed on Friday, having been over-subscribed over 21 times. The Rs 3,000 crore issue, the second biggest public offer after that of Reliance Power in 2008, attracted good investor response and received commitment worth of Rs 63,000 crore from all categories of investors. According to sources, the portion reserved for qualified institutional buyers (QIB) got subscribed 39 times, non-institutional investors by 8.5 times and retail investors by 2.2 times. Most marketmen said the attractive price band of the IPO enthused investors besides the overall recovery in the secondary market that is getting reflected in the primary market.
2. Adani Power IPO analysis, review and recommendation by Nirmal Bang Adani Power Ltd. (APL) is a power project development company, which is developing, and will operate and maintain, power projects in India. The company has four thermal power projects under various stages of development, with a combined installed capacity of 6,600 MW. In addition, the company is also planning to develop two power projects with a combined installed capacity of 3,300 MW. APL intends to sell the power generated from these projects under a combination of long-term power purchase agreements to industrial and state-owned consumers and on merchant basis.
APL is a part of the Adani Group, a leading business group in India. Adani Group has a presence in high growth sector like Power, Infrastructure, Global Trading, Logistics and Energy etc.
APL at present has four power projects under development: - Mundra Phase I and II Power Project: This project will have four sub-critical generation units of 330 MW each, with combined capacity of 1,320 MW. The first 330 MW unit of Mundra Phase I and II Power Project have commissioned in July 2009, and that the power project will be fully commissioned by February 2010. - Mundra Phase III Power Project: This project will have two super-critical generation units of 660 MW each, with combined capacity of 1,320 MW. The first 660 MW unit of Mundra Phase III Power Project will be commissioned by January 2011, and that the power project will be fully commissioned by June 2011.
- Mundra Phase IV Power Project: This project will have three super-critical generation units of 660 MW each, with combined capacity of 1,980 MW. The first 660 MW unit of Mundra Phase IV Power Project will be commissioned by August 2011, and that the power project will be fully commissioned by April 2012. - Tiroda Power Project: This project will have three super-critical generation units of 660 MW each, with combined capacity of 1,980 MW. The first 660
MW unit of Tiroda Power Project will be commissioned by July 2011, and that the power project will be fully commissioned by April 2012.
In addition to this the company is also planning to develop two thermal power projects at Dahej and Kawai with a combined installed capacity of 3,300 MW.
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