The initial share sale offer of Indiabulls Power received bids for nearly 17 times the shares on offer on the final day of the IPO as institutional investors continued to flood the counter. The issue received bids for over 464.89 crore shares till 1300 hrs on Thursday,compared with 27.86 crore shares on offer,thereby garnering demand of 16.68 times,according to the data on the National Stock Exchange. The shares are being offered in a range of Rs 40-45 a piece and the company plans to mop up Rs 1,700 crore from the primary market at the upper end of the range. Qualified institutional investors flocked the issue and bid for over 26 times the shares on offer. High networth individuals and retail investors subscribed to over three times and 0.55 times,respectively,for the shares reserved for them,investment banking sources said. Despite good subscription of the IPO,brokerages are sceptical about the company's timely project execution as the group lacks prior experience in power business. "Indiabulls Power has ambitious plans to install power projects of around 6,615 MW over the next 4-5 years. Though the Indiabulls group has demonstrated strong execution capabilities in real estate and financial services,but lack of prior experience in the power sector can lead to high execution risk," Prabhudas Lilladher said in a research note.
