Adani Power Ltd By Satyawan

ADANI POWER LTD.

INTIAL PUBLIC OFFER

BY: SATYAWAN DHANKHAR

Public issue….

Public issue is a way of making a new issue of stock by offering it for sale to the public. Corporate may raise capital in the primary market by way of an initial public offer, rights issue or private placement. There are two types of public issue… Ø

fixed price issues

Ø

Book building issues

Fixed Price Issue..

Price at which the securities are offered and would be allotted is made known in advance to the investors. Demand for the securities offered is known only after the closure of the issue. 100 % advance payment is required to be made by the investors at the time of application. 50 % of the shares offered are reserved for applications below Rs. 1 lakh and the balance for higher amount applications .

Book Building Issue..

A 20 % price band is offered by the issuer within which investors are allowed to bid and the final price is determined by the issuer only after closure of the bidding. Demand for the securities offered , and at various prices, is available on a real time basis on the BSE website during the bidding period. 10 % advance payment is required to be made by the QIBs along with the application, while other categories of investors have to pay 100 % advance along with the application. 50 % of shares offered are reserved for QIBS, 35 % for small investors and the balance for all other investors .

Book Building Process…

SEBI Guidelines…

Filing of prospectus Application for Listing Dematerialization of shares Qualified Institutional Buyer” shall mean Exemption from Eligibility Norms IPO Grading

SEBI Guidelines…

Present shares to be fully paid-up Pricing of the Securities Price Band Denomination of shares Promoter Contribution and Lock-in Securities not included in the above

SEBI Guidelines on issue of advertisement….

Advertisement shall be truthful, fair and clear Shall not contain untrue or misleading or misleading statement Disclose all relevant facts Clear, concise and Understandable language Avoid technical, legal, complex terms No advertisement in Crawlers Reference to the red-herring prospectus

Continue….. No slogans, captions or one liners Shall include risk factors Risk factors to be given in the same font size The print size shall not be less than point size 7 The style of the font shall be Times new roman No advertisement relating to the full or over subscription while the issue is open Closure announcement can be made only after RTA certifies that 90% is subscribed

Role of merchant banker….

Directing and coordinating the activities with under writers, registrars and bankers. Assuring the investors of the soundness of the issue Promising companies/entrepreneurs/promoters tap resources, Complying with SEBI guidelines .

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Role of major Player…..

Green Shoe Option…

It gives the underwriter the right to sell investors more shares than originally planned by the issuer . It provide additional price stability to a security issue. Typically, It allow underwriters to sell up to 15% more shares than the original number set by the issuer

Company Profile…. Adani Power Limited, a subsidiary of Adani Enterprises Limited. It was incorporated in 1996. The company is originally incorporated by Mr. Gautam S. Adani, Mr Rajesh S. Adani. The company became company on June 2002.

a

private

limited

The company was converted into a public limited company on April 12, 2007 .

Adani IPO details….. Public Issue Open: July 28 ,2009 to July 31, 2009 Public Issue Type: 100% Book Built Issue Public Issue Size: 301,652,031 Equity Shares of Rs. 10/Face Value: Rs. 10/Public Issue Price: Rs 90/- to Rs 100/Minimum Order Quantity: 65 Shares Maximum Subscription Amount for Retail Investor: Rs 100,000/Listing: BSE, NSE Lead Manager: DSP Merrill, Enam, IDFC-SSKI Ltd, ICICI Securities, JM Financial, Kotak Mahindra, Morgan Stanley, SBI Capital.

Registrar: Karvy Computershare Pvt Ltd Syndicate member: India infoline, Kotak securities India ltd. ,Sherkahn ltd.

Objects of the Issue & IPO Grading…

To part finance the construction and development of Mundra Phase IV Power Project, for 1,980 MW. General corporate purposes. Fund the subsidiary that will engage in the construction and development of the 1980 MW Tiroda Power Project. ICRA has assigned an IPO Grade 3 to Adani Power Limited IPO. It means company has average fundamentals. ICRA assigned LBBB and A2 to the bank lines of Adani Power Limited.

Power project under planning…

The Issue of Adani…..

Adani IPO information… Adani Power Limited has become the first IPO in the country to attract anchor investors. The six anchor buyer investors will be given 18% of IPO. The name of Six anchor investor:Ø T Rowe Price, Ø TPG (through Credit Suisse), Ø ECOFIN Ø , Legg Mason (through CLSA), Ø AIC and Sundaram Mutual Fund

Method and process of bidding… Declaration of date Bid/ issue period Investor should approach syndicate Each Bid cum Application Form will give the Bidder the choice to Bid for up to three optional prices. Bidder cannot Bid on another Bid cum Application Form. Transaction registration slip(TRS) Approach the members of the Syndicate to submit their Bid Along with the Bid cum Application Form, all Bidders will make payment

Red Herring Prospects….

The RHP dated July on 14, 2009 issued in accordance with section 60B of the company act. It does not have complete particular of the price at which the equity share are offered and size of the issue. It will become prospectus after filling with ROC.

Some term associate with IPO…. Escrow Accounts :Account opened with the Escrow Collection Bank(s) for the Issue and in whose favor the Bidder will issue cheques. CAN: Intimation of allocation of Equity Shares sent to the Bidders who have been allocated Equity Shares. Bid cum Application Form: The form used by a Bidder to make a Bid. Designated Date: The date on which funds are transferred from the Escrow Account to the Public Issue Account. Syndicate Agreement: The agreement to be entered into between the Syndicate and our Company in relation to the collection of Bids in this Issue