Adani Power Ltd BY SATYAWAN

8/14/2019 Adani Power Ltd BY SATYAWAN

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ADANI POWER LTD.

INTIAL PUBLIC OFFER

BY: SATYAWAN DHANKHAR


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Public issue.

Public issue is a way of making a new issue of stock byoffering it for sale to the public.

Corporate may raise capital in the primary market by

way of an initial public offer, rights issue or privateplacement.

There are two types of public issue

fixed price issues

Book building issues


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Fixed Price Issue..

Price at which the securities are offered and would beallotted 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 theinvestors at the time of application.

50 % of the shares offered are reserved for

applications below Rs. 1 lakh and the balance forhigher amount applications.


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Book Building Issue..

A 20 % price band is offered by the issuer within whichinvestors are allowed to bid and the final price isdetermined by the issuer only after closure of thebidding.

Demand for the securities offered , and at various prices, is available on a real time basis on the BSEwebsite during the bidding period.

10 % advance payment is required to be made by theQIBs along with the application, while other categoriesof investors have to pay 100 % advance along with the

application.

50 % of shares offered are reserved for QIBS, 35 % forsmall investors and the balance for all other investors .


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Book Building Process


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SEBI Guidelines

Filing of prospectus

Application for Listing

Dematerialization of shares

Qualified Institutional Buyer shall mean

Exemption from Eligibility Norms

IPO Grading


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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


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SEBI Guidelines on issue of advertisement.

Advertisement shall be truthful, fair and clear

Shall not contain untrue or misleading ormisleading 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


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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 rela ting to the full or oversubscription while the issue is open

Closure announcement can be made only after RTAcertifies that 90% is subscribed


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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 totap resources, Complying with SEBI guidelines .


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Role of major Player..


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Green Shoe Option

It gives the underwriter the right to sell investorsmore shares than originally planned by the issuer.

It provide additional price stability to a securityissue.

Typically, It allow underwriters to sell up to 15%more shares than the original number set by theissuer


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Company Profile.

Adani Power Limited, a subsidiary of AdaniEnterprises Limited. It was incorporated in1996.

The company is originally incorporated byMr. Gautam S. Adani, Mr Rajesh S. Adani.

The company became a private limitedcompany on June 2002.

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


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Adani IPO details..

Public Issue Open: July 28 ,2009 to July 31, 2009

Public Issue Type: 100% Book Built IssuePublic 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, ICICISecurities, JM Financial, Kotak Mahindra, Morgan Stanley, SBI

Capital.

Registrar: Karvy Computershare Pvt Ltd

Syndicate member: India infoline, Kotak securities

India ltd. ,Sherkahn ltd.


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Objects of the Issue & IPO Grading

To part finance the construction and developmentof 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 MWTiroda Power Project.

ICRA has assigned an IPO Grade 3 to AdaniPower Limited IPO. It means company has averagefundamentals.

ICRA assigned LBBB and A2 to the bank lines ofAdani Power Limited.


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Power project under planning


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The Issue of Adani..


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Adani IPO information

Adani Power Limited has become the first IPO in thecountry to attract anchor investors.

The six anchor buyer investors will be given 18% ofIPO.

The name of Six anchor investor:-

T Rowe Price,

TPG (through Credit Suisse),

ECOFIN

, Legg Mason (through CLSA),

AIC and Sundaram Mutual Fund

M h d d f biddi


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Method and process of bidding

Declaration of date

Bid/ issue period

Investor should approach syndicate

Each Bid cum Application Form will give the Bidderthe choice to Bid for up to three optional prices.

Bidder cannot Bid on another Bid cum ApplicationForm.

Transaction registration slip(TRS)

Approach the members of the Syndicate to submit

their Bid

Along with the Bid cum Application Form, allBidders will make payment


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Red Herring Prospects.

The RHP dated July on 14, 2009 issued inaccordance with section 60B of the company act.

It does not have complete particular of the price atwhich the equity share are offered and size of theissue.

It will become prospectus after filling with ROC.


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Some term associate with IPO.

Escrow Accounts :Account opened with the Escrow

Collection Bank(s) for the Issue and in whose favorthe Bidder will issue cheques.

CAN: Intimation of allocation of Equity Shares sent tothe Bidders who have been allocated Equity Shares.

Bid cum Application Form: The form used by aBidder to make a Bid.

Designated Date: The date on which funds aretransferred from the Escrow Account to the Public IssueAccount.

Syndicate Agreement: The agreement to be enteredinto between the Syndicate and our Company inrelation to the collection of Bids in this Issue


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Adani Power Ltd BY SATYAWAN

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