Indiabulls Power IPO to open 12 Oct

Indiabulls Power IPO to open 12 Oct

Mumbai: Indiabulls Power Ltd, a unit of Indiabulls Real Estate, plans to open its initial public offering (IPO) from 12 to 15 October, a company official said on Monday.

A senior group official had told Reuters in June the firm was targeting raising Rs15 billion ($315 million) in equity, and markets have strengthened since then.

According to its draft prospectus released in July, the company plans to issue a maximum of 390.7 million equity shares, including a greenshoe option, constituting 19% of its post-issue equity.

Indiabulls Power is currently developing three power plants in western and central India with total capacity of 6,600 megawatts and will use the issue proceeds to fund two of these, said the company official, who has knowledge of the plans but declined to be named.

Indiabulls Real Estate currently holds 71.4% in the company. UK-based billionaire LN Mittal’s LNM India Internet Ventures holds a 10.7% stake, while private equity firm FIM Ltd holds the remaining 17.9%.

In the past two months, state-run utility NHPC has raised $1.25 billion and private utility Adani Power raised $630 million through IPOs.

Indian firms have raised about $15 billion through share sales in the past six months, encouraged by a share market that has risen 75% so far in 2009. India’s benchmark index hit a 16-month high last week.