Another IPO cameth and another one bites the dust.We have had a string of IPO launches amidst the so called bull run in the markets.But, barring the Indian Oil IPO, i don’t think any IPO had the steam to finish the first day in positive.Infact, almost all the IPO’s on the day of listing ended up in red.
So, when Indiabulls Power IPO opened , the history was against it even though the IPO had been hugely oversubscribed.The Indiabulls group it felt had timed the IPO to perfection but then the markets have a way of their own.Past week has been rather bad for the markets with markets shedding a lot of points with BSE trading at 6 week low.
What was surprising though that the IPO opened to a lacklustre debut even when the rest market staged a pullback of sorts.
IndiaBulls Power is a subsidiary of Indiabulls Real Estate and the IPO received tremendous response from Qualified Institutional Investors(QIB’s) including Fidelity, Nomura, Capital International, Goldman Sachs AMC, Mirae AMC, Reliance MF, SBI, IDFC, LIC MF, HSBC, Halbis, Birla MF and ICICI Pru Life Insurance
Here are the salient features of the Indiabulls Power
- The promoter’s shareholding would come down to 59.18 per cent from the current 71.43 per cent following the issue.
- According to the company’s plans the IPO proceeds would go toward part-financing the construction and development of the 1,320-MW Amravati Power Project Phase – I and the 1,335 MW Nahsik Power Project.
The IPO activity today was nothing to talk about with the share shunned by one and all in the market.
- Indiabulls Power ended its first trading session at a hefty discount of 15.11% to its issue price of Rs 45. The share closed at Rs 38.20 on the NSE.
- It touched an intraday high of Rs 45.05 and intraday low of Rs 35.35. The total traded quantity was 17,38,96,773 shares and turnover was at Rs 68,776.17 lakh.
- On the BSE, the share closed at Rs 39.25 at a hugh discount of 12.78% to its issue price. It touched an intraday high of Rs 45.50 and intraday low of Rs 35.
All in all, it ended up just like any other IPO in recent months.Makes me wonder if the organizations have misjudged the small bull run for returned investor confidence.
I still feel that we are still far from the point where the Investor confidence returns to the market.The market behaviour is volatile and IPO’s will not evoke a lot of positive response from the Investors.
What are your thoughts on this?Do you think that IPO’s need to wait some more or Indiabulls IPO was shunned for other reasons