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Indiabulls Power raises Rs 316 cr from 5 anchor investors

Last Updated: Saturday, October 10, 2009 - 15:58

New Delhi: The in share sale offer of Indiabulls Power attracted five anchor investors, raising over Rs 316.46 crore, before the slated opening of the issue on Monday.

The investors include Halbis, Nomura, Norges, GLG and Tosca who subscribed to shares of the company at the upper end of the price band, according to sources.

The investors subscribed to 18 percent of the issue or 7,03,26,000 shares at the upper end of the price band of Rs 45 a piece. This was the total allotment reserved for the anchor investors, according to sources in the know.

As per the rule, anchor investors are entitled to 30 percent of the shares reserved for Qualified Institutional Buyers (QIBs) in an Initial Public Offer (IPO).

Indiabulls Power is planning to raise up to Rs 1,700 crore through IPO of 39.07 crore shares. Of this the IPO would be of 33.98 crore equity shares of Rs 10 each and a green shoe option of up to 5.09 crore equity shares.

It has fixed a price band of Rs 40-45 per equity share. The issue would close on October 15. Morgan Stanley India Company Pvt Ltd is acting as the book running lead manager to the issue.

The proceeds of the IPO would be utilised to part finance
the construction and development of the 1,320 MW Amravati
Power Project Phase-I, to part finance the construction and
development of the 1,335 MW Nashik Power Project, apart from
general corporate purposes, the company said.

Indiabulls Power has five coal-fired thermal Power
Projects -- Amravati Phase I and ll, Nashik, Bhaiyathan and
Chattisgarh under various stages of development.

The combined installed capacity of the five projects
stands at around 6,615 MW and entails a total capital outlay
of over Rs 31,000 crore.

The company`s shareholders include foreign investors
such as FIM Limited and LNM India Internet Ventures Limited.

Indiabulls Power had filed the draft prospectus with
market regulator SEBI in July this year and on October 1, it
filed the red herring prospectus with the Registrar of
Companies in this regard.

Bureau Report

First Published: Saturday, October 10, 2009 - 15:58
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