Disappointing investors, Indiabulls Power Ltd, which raised about Rs 1,780 crore in a heavily subscribed IPO, slumped as much as 22 per cent on debut before closing 12.8 per cent lower at Rs 39.25 on Friday. As the company had sold the shares in the IPO at Rs 45 per share, its listing at a lower price has raised questions about IPO pricing.

Though the share hit a high of Rs 45.50, it fell to an intra-day low of Rs 35. “The lukewarm listing of Indiabulls Power has disappointed investors who were hoping for some gains. This will deter investors from going for IPOs. Retail response to new IPOs is already down due to high IPO valuation. It will also affect the demand for future IPOs,” said BSE dealer Pawan Dharnidharka.

Two other power IPOs — Adani Power and NHPC — which raised money from the public this year are also quoting below their offer prices.

The Indiabulls issue saw high demand from qualified institutional buyers, with the category getting subscribed 40.49 times. The non-institutional investors’ category was subscribed 5.76 times, while the portion reserved for retail individual investors was subscribed 1.09 times.

Analysts warn that lukewarm listing by companies would affect the prospects for future issuers. Indian firms have raised around Rs 79,000 crore in share sales so far this year and several more have filed applications to raise more than Rs 47,000 crore.