Posts Tagged ‘top end of the price range’

Adani IPO fully subscribed on day 1 – sources

Adani IPO fully subscribed on day 1 – sources

Adani Power Ltd’s initial public offering worth up to $623 million was fully subscribed within an hour of opening to investors on Tuesday, three sources involved in the deal said.

By 10:36 a.m (0506 GMT) the 301.65 million share offer was subscribed three times, mostly at 100 rupees, or the top end of the price range, said the sources who declined to be named.

The strong response will be encouraging to other Indian companies lining up share sales.

“Institutional money is driving it now. Retail will follow on seeing the tremendous response,” one source said.

The share offer closes on July 31.

On Monday sources said major U.S. funds T Rowe Price and TPG were among anchor investors who bought 52.85 million shares in Adani’s offering.

SMC Capitals Equity Head Jagannadham Thunuguntla who commented before the IPO openings that “Since the Adani Power IPO is being brought about by a big business house, a lot of investors are keeping their money aside to invest in it after the pre-IPO placement garnered a good response”  was proved right.

Indian firms have sold shares worth more than $7.5 billion so far this year, surpassing the full-year total of 2008, helped by a sharp rally in shares and rising foreign fund inflows.

Adani is the first large IPO in more than 18 months. Most share sales this year have been secondary offerings.