The initial public offering (IPO) of 3i portfolio company Adani Power has been over-subscribed 21.64 times, according to data from India’s National Stock Exchange (NSE).
The strong response is particularly significant given the slowdown in India's IPO market — NSE data show that this year, there have so far been only seven issues, compared to 32 issues in the first seven months last year. In all of 2008, there were 36 issues on the NSE, representing a 163 percent drop from 2007 totals.
NSE: Adani gets strong response
Adani, an Indian power company in which 3i has a 7.37 percent stake, raised INR30.2 billion (€447 million; $630 million) in its IPO, which Reuters said made it the largest Indian IPO in the past 18 months. The IPO also included a pre-sale of of about 52.9 million shares worth roughly INR5 billion that were allocated ahead of the IPO to six anchor investors including investment manager T Rowe Price and hedge fund TPG-Axon Capital.
Adani Power had shelved previous plans to go public last year, having filed an initial draft prospectus in May 2008, due to weak market conditions.
In June, 3i injected an additional INR744 million into the company, which gives it a 7.37 percent stake post-IPO. Its $227 million investment into Adani Power in 2007 marked the maiden deal from the 3i India Infrastructure Fund, which closed on $1.2 billion in April 2008. 3i is the company’s second largest stake holder after the company's parent, Adani Group.