The power sector is set to energise the capital market with three power companies gearing up with their initial public offerings (IPOs) to raise over Rs 5,000 crore. First in the line is Adani Power which would hit the markets in the last week of July. This will be soon followed by the IPO of National Hydroelectric Power Corporation (NHPC), which is expected to start its roadshows for the IPO by the end of this month and open the offer in the offer in the first week of August. Indiabulls Real Estate’s power subsidiary has filed a draft prospectus with Sebi for an initial public offer to raise around Rs 1,500 crore. “Indiabulls Power (formerly Sophia Power Co) has filed its Draft Red Herring Prospectus with the Sebi on July 15, 2009, in relation to its IPO of equity shares,” Indiabulls Real Estate said.

Adani Power has said that it intends to raise Rs 2,200 crore through the IPO. “It will be the first big IPO to hit the markets after the it took a 49 per cent plunge last year. The key to success of the issue lies in pricing, as investors are a bit sceptical at this point in time and any overstretched valuation will reflect in the subscription to the offer,” said Karvy country head (investment banking) Rajnish Rangari. The company will use the proceeds of the sale to fund the construction of 6,600 MW-capacity projects to come up in Mundra and Tiroda in Gujarat .

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