Adani Power which completed its maiden IPO during the last week of July 2009 is to list this week on Thursday the 20th of August 2009. The issue was very heavily oversubscribed and was the first IPO which introduced the concept of ‘Anchor Investors’. The anchor investor is made an allocation of shares from within the QIB portion of the IPO of 60%. The anchor investor portion is 30% of the QIB portion or simply put 18% of the whole issue.

The point to note in the issue is that grey market premium during the time when the IPO was on was Rs 9 -10, while the cost of interest for the HNI was just about Rs 3.50 assuming 11.25% interest and 13 days as the duration. As long as the share trades above Rs 104, the HNI will be making money.