New Delhi / Mumbai: Indian billionaire Gautam Adani’s power producer Adani Power Ltd, which raised Rs3,020 crore in a share sale, was little changed in its Mumbai trading debut on speculation the utility’s future expansion may slow.

Adani Power swung between gains and losses and closed at Rs100.10, compared with Rs100 at which the stock was sold in the initial public offering (IPO) last month. The shares earlier climbed 10% and declined around 1.7%.

Utilities, including Tata Power Co. and Indiabulls Power Ltd, plan to tap appetite for power shares after the benchmark Sensex headed for its best year in six, gaining 56%. The pace of electricity capacity expansion in India, which power minister Sushil Kumar Shinde said has been slowed by delays in equipment supply, has some investors worried.

“Adani has very less capacity on the ground and there is always the risk to planned future additions," said Girish Solanki, a Mumbai-based analyst with Angel Broking Ltd. “We think a fair value for the stock is Rs82."

The utility, which plans to build power plants with a combined capacity of 6,600MW by 2012, may not raise more funds for at least two years, Ameet Desai, a director at Adani Power, told reporters in Mumbai on Thursday.

“We have enough cash and will finance all projects from internal accruals," he said. Adani Power has secured loans of Rs22,680 crore for the projects, Desai said on 26 June.

Adani Power offered 301.6 million shares at Rs90-100 each, including 52 million shares to so-called anchor investors before the public sale. The utility will use the funds to partly finance power projects in Gujarat and Maharashtra, according to its share sale document.

The power producer started operating its first unit at Mundra in Gujarat with a generating capacity of 330MW around three weeks ago, Devendra Amin, spokesman for the Adani group, said on Thursday.

Adani Power’s share sale was managed by DSP Merrill Lynch Ltd, Enam Securities Pvt., IDFC-SSKI Ltd, JM Financial Consultants Pvt., Kotak Mahindra Capital Co., Morgan Stanley and ICICI Securities Ltd.

India’s utilities aim to add 78,700MW of capacity in the five years to 2012.