The initial public offering of Adani Power has seen huge investor interest and was subscribed 3.8 times within the first few minutes of its opening, quoting sources. Maximum bids for the initial public offering of 301,652,031 shares were at Rs 100 a share.
Confirming this development, Ameet Desai, Director, Adani Power, said most bids had indeed come in at Rs 100 per share. He said the company will take a decision on pricing during the closing of the IPO.
According to Desai, the largest anchor investor allocation is to T Rowe Price.
The company, he said, is likely to list its shares around August 20.
Here is a verbatim transcript of the exclusive interview with Ameet Desai
Q: How much has the issue done so far in the first 45 minutes of opening?
A: It’s about 3.5 times over the subscriptions which we have received in first one hour and most of these are large bids from large investors.
Q: And at what prices has this 3.5 times book made?
A: Most of the bids except one are all at Rs 100 is what I have been told by the advisors, I am actually currently engrossed doing the road shows.
Q: Even if the hits are mostly towards Rs 100 per share will the management look favourably at leaving something on the table and perhaps pricing it to the lower end of the band?
A: Pricing is something on which we will take a decision on the close of that issue, I just want to say that this is an extremely gratifying experience with investors posing their full confidence in India story and in Adani power as a power opportunity. We are certainly feeling extremely overwhelmed and thankful to the investors so I am sure like all our decisions we will take the decision and the room for the upside.
Q: What kind of feedback are you getting at these road shows because you are referring from some investors that there is a concern on the valuations for the Adani Power IPO, I know it’s many times oversubscribed and even though people feel that on the valuations front its been priced at a little on the premium side?
A: Of several investors that we have met over the last one week leaving a handful, not more people have really expressed concern on valuations and the story has been extremely well received and we are seeing that investors are actually waiting to participate in Indian infrastructure story and in Indian power sector.
Q: Can you confirm the name of anchored investors who bought at Rs 95?
A: Some of the names like Sundaram MF etc on the local side and then we have Ecofin, T Rowe Price, Legg Mason, AIC of Canada and a couple of more investors and even this participation has clearly come with an understanding that whatever is the final pricing, they are willing to go to that level and 5.2 crore shares which are allocable and we have the demand of 9.4 crore shares.
Q: It was all done at Rs 95 pending the final price of the issue?
A: Yes it has done with Rs 95 with clearly instructions on the depositary side that if the price moves to Rs 100 then this will move to Rs 100.
Q: Who has the largest allocation being done to amongst the anchor investors?
A: T Rowe Price.
Q: of the 3.5 times book which has been done already in the first one hour of trade, can you give some sense of a retail response and whether its come in, because retail typically comes in on the last day but have you seen any initial signs of nibbling from retail?
A: Not yet, and as you said, its too early for retail people to come to the market but what we hear from the distribution channels of the broking houses and the brokers the response for participation seems to be on a very positive side.
Q: Given your calculations of how long it will take to process, have you come up with a rough date of listing, even a ballpark date of when the stock may list?
A: This should be around August 20.
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