Adani Group IPO

Yet another IPO is set to hit the Indian Markets in the recent times. Adani Group, which is in the business of power generation, is planning to come out with its IPO or Initial Public offer.


What is the capital raised by Adani Group IPO?
The Adani Group IPO is planning to raise approximately 5000 Crore Rs. from the primary markets through the IPO.

What is the business of Adani Groupfor which the IPO is being broght to the markets?
Adani Group is in the business of power generation. The IPO is being planned to raise the money so that it can fund the setting up a power generation capacity of close to 10,000 megawatt in next five years. The company is having investments plans for generating 1,320 mw power in Rajasthan and 2,000 mw at Dahej in Gujarat by 2012.

Who are the competitors of Adani Group IPO in the power sector?
Other power companies are going to compete with Adani. Recently concluded Reliance Power IPO has seen its fate. While the government controlled Gujarat State Petroleum Corporation (GSPC) is also planning to come to the capital markets through its IPO in September (Read review of GSPC IPO here).
What is the listing date of Adani Group IPO?
The Adani Group IPO is planning to hit the markets much before the GSPC IPO. Though the exact dates have not been finalized.

What are the financial results and business valuations of Adani Group IPO?
As per the news on BS, Adani's 4,620 mw power project at Mundra is being set up in the vicinity of Tata Power's ultra mega power project (UMPP) of 4000 mw.
The company is already implementing the project through internal fund generation, debt and private placement of equity with London-based 3i Group Plc.
Adani also owns and operates country's one of the largest and highly mechanised state-of-art-ports at Mundra in Gujarat, which is likely to handle close to 30 mmt of cargo during 2007-08.
The power plants of Adani and Tata at Mundra will be based on imported coal. The coal requirements for these plants will be near 26 mmt. This coupled with other commercial coal imports will make Mundra the world's largest coal receiving terminal with capability to handle over 30 mmt of coal.

Will this IPO from Adani be a good investment?
Well, that’s a million dollar question. Nothing can be said about the valuations till the price is decided. We will have to wait to see what the price band is and what is the share valuation of the company. Otherwise, it may also end up like the unfortunate Zero power watt Reliance Power IPO listing.

Still more than a few months to go….Let’s see when this IPO opens up and comes out with the price band and IPO size.

Table of Contents