Indiabulls Power Limited the third mega power issue in the current season was expected to be different from the other two IPO’s of Adani Power and NHPC. The difference was there but on the unexpected side. It turned out to be a DISASTER. This failure of this issue to be anywhere near the issue price forget returns points out to the gross over valuation by merchant bankers and the greed of the promoters in pricing issues.
The stock opened at Rs 44.95 on the BSE and Rs 45.05 on the NSE respectively. The high on the BSE was Rs 45.50 and the open of Rs 45.05 on the NSE.
| Exchange | Open | High | Low | Close | Net Change | % gain | Volume | Wt Avg |
| BSE | 44.95 | 45.50 | 35.00 | 38.30 | -6.70 | -14.89 | 44503667 | 37.97 |
| NSE | 45.05 | 45.05 | 35.35 | 38.35 | -6.65 | -14.78 | 29370154 | 37.82 |
| Total | 73873821 |
The company had issued 33.90 cr shares at Rs 45 and the issue was oversubscribed almost 40 times by QIB’s. Having received an allotment of just 2.5% of their appetite one wonders where they have disappeared and why they are not buying from the market when the share is available 14% cheaper. It may also be mentioned that there is a green shoe option of 15% of the issue size which can be used for price stabilisation.
In the interest of investors and the future of IPO’s I believe it is time promoters and merchant bankers did their bit to protect the long term interest of investors and the capital markets.
