India Bulls Power Ltd.pdf New

Indiabulls power ltd. (IPL) has come up with its (IPO) initial public offering to fund its major projects in the field of power generation The company has five thermal power projects under development, which will have a combined installed capacity of 6,615 MW. Amongst them are, the construction and development of the 1,320 MW Amravati Power Project Phase – I (Rs 775 crore from the issue) and 1,335 MW Nashik Power Project (Rs 660 crore from the issue). Apart from these IPL has various other projects in pipeline such as Bhaiyathan Power Project, Amravati Phase II Power Project, Chhattisgarh Power Project and some of them in advanced stages. The IPO of 390, 700,000 equity shares will open for subscription on 12th October and ends on 15th October.

For the year ended March 31, 2009, it has reported profit of Rs 82.96 crore on total income of Rs 141.34 crore on the consolidated basis.

“At the higher end of the band, IPL is expected to be valued at 2.1xFY12E to post-issue book value. We value IPL’s 5295MW on DCFE basis at Rs 37 and have given a 25% premium to capture the value of future projects, to arrive at Rs 46 per share value. We would recommend 'Subscribe' for listing gains.”

Going further, Crisil has rated IPL(Indiabulls Power Ltd) 3/5 for its IPO based on the fundamentals which certainly indicates a neutral valuations. Given the brand name and the management abilities it would be worth buying this stock or applying for IPO as it looks fairly priced. But given the current market volatility where large IPO’s Like NHPC and OIL INDIA have failed to achieve significant returns since listing.

Company Oil India NHPC Adani power

Issue price 1050

High 1210

36 100

42 110

CMP 1195

*

33.05 101.25 CMP as on 9-Oct-2009

Therefore recent IPO’s from energy and power sector has not been too attractive in terms of returns. Considering this situation we would suggest the investors to go for Indiabulls Power Ltd. IPO With medium term to long term view as most of the projects are in advanced stages and the valuations look very attractive considering its 2012-2013 earnings

Below are the fundamentals of IPL. Price Band Crisil IPO Grading Opening Date Closing Date BRLM Issue Size (Rs bn) excluding GSO Pre-issue equity Fresh Issue Employee Reservation QIBs Retail Non-institutional Post-issue equity Green-shoe option (GSO) Post-issue equity with GSO

Rs40 to 45 3/5 October 12, 2009 October 15, 2009 Morgan Stanley Rs 13.6-15.3 1659.00 339.8 0.00 203.88 101.94 33.98 1998.8 upto 50.9 2049.7

Share Holdings Share Holdings Promoter group Foreign Investors Public GSO

Key Financial EBITDA (Rs m) PAT (Rs m) EPS (Rs) Growth (%)

Pre issue (%) 71.4 28.6 -

FY 09 (195) 831 1.0 346.9

Post Issue (%) 57.8 23.1 16.6 2.5

FY 10E (210) 715 0.4 (64.3)

FY 11E (264) 539 0.3 (24.6)

FY 12E (354) (393) (0.2) -

FY 10E

FY 11E

FY 12E

Profitability & Valuation

Profitability &

FY 09

Valuation RoE (%) RoCE (%) P/ BV (x) PE (x)

3.8 4.1 1.6 44.9

2.1 2.2 2.0 125.8

1.2 1.6 2.0 166.7

(0.9) 1.2 2.1 -

Before buying or renew any Insurance or Investment Plan like Term,chidren future, pension,Health,Fixed Deposits etc… call once for comparison of all product and save money and get a higher benefit.

For Further Details kindly Contect : Thanks and Regards, Kirang Gandhi Corporate Financial Planner www.kgandhi.anindia.com m-9271267305