Adani Power IPO review

Adani Power IPO review for those who want to invest in the energy stocks in the emerging markets. There are has been no IPO’s in the power sector in India after the Reliance Power IPO and its huge expectations.

A lot of investors definitely burnt their fingers with the Reliance Power IPO and now it seems that the Adani Power IPO as made sure that there are anchor investors for the IPO.

Adani group

Adani Group is a diversified group with interests in ports, gas distribution as well as real estate. APL or Adani Power is implementing 2640 MW coal based Thermal power project at Mundra. They also are planning a 1320MW plant at Tiroda, Gujarat via the subsidiary. Adani Maharashtra power Ltd.

Power sector outlook

The demand for power is there as there is shortage of power in the country. The other competitors like Reliance Power also have very less capacity and they are also building power plants which will be commissioned by 2013.

Now is the stock worth investing in the IPO? I would suggest that definitely it is as Adani is strong in the infrastructure area and they have port already functional to help in the transport of coal.

The IPO Issue has already been over subscribed 3.8 times in the first day itself with a price of 100 Rupees.

Adani Power IPO is planning to raise around Rs 2200 Crores

Of course there is risk in the Adani power IPO and that risk is because of the fact that

Adani have never managed the power project of this size as well as there is long gestation period when it comes to actually revenues coming in.

The company also says in its prospectus that there are chances that the project will have difficulties procuring coal. All six projects are coal based.

Update on Aug 2009 : Please see the report for the expected NHPC Listing date and the NHPC listing price

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