New Delhi: Indiabulls Power Ltd, partly owned by billionaire Lakshmi Mittal, got more than Rs24,300 crore of bids, or 22 times the stock on offer, in an initial public offering (IPO) as investors bet on growth in electricity demand.
The unit of Indiabulls Real Estate Ltd, which will start producing power in February 2012, got bids for 6.08 billion shares in Mumbai at close on Thursday, compared with 278.6 million offered, according to the National Stock Exchange’s website. The shares were being sold at Rs40-45 apiece.
“Investors must have been attracted to the IPO because of the performance of Indiabulls Real Estate, which has outperformed the Sensex by a big margin,” Bhargav Buddhadev, an analyst at Noble Research in Mumbai, said by telephone. “The Indiabulls group has established itself in the eyes of institutional investors.”
India plans to double generation capacity in the next seven years.