Indiabulls Power Limited (IPL) is tapping the capital markets with a public issue of 33.98 cr shares. The price band is yet to be announced. The company is having its road show for the same in Mumbai today, and in all probability the price band would be announced at the road show.

IPL had some time during the last month done a pre-IPO placement to some Indian institutional investors at a price of Rs 43.50 per share. These shares had a lock in of one year. The placement was subsequently cancelled due to the fact that the company had not kept a provision of the same in the Draft Red Herring Prospectus. Considering the fact that these shares with a lock in were placed at Rs 43.50 per share, a probable price band for the issue would be in the range of Rs 45-50.

Assuming the price band to be correct the company would be raising between Rs 1529 crs and Rs 1699 crs at the lower and higher end of the price band respectively. The market cap of the company post issue at the price band would be Rs 9223 crs and Rs 10248 crs respectively.

The issue opens on Monday the 12th of October 2009 and closes on the 15th of October 2009. This would be the third mega power IPO in the last three months and investors would be keenly watching how things unfold.

Readers would be aware that Adani Power and government owned NHPC which listed in August and September respectively had not made any money for investors as yet. This issue would be keenly watched to see whether investor’s fortune improves or not.