Meanwhile, the BSE Sensex was up 125.73 points, or 0.46%, to 27,237.94.

On BSE, so far 7.60 lakh shares were traded in the counter, compared with an average volume of 13.57 lakh shares in the past one quarter.

The stock opened with an upward gap, rising by the maximum 5% daily circuit and remained locked at the 5% level at Rs 12.89 so far in the day.

The stock hit a 52-week high of Rs 16.22 on 26 May 2014. The stock hit a 52-week low of Rs 6.12 on 7 October 2013.

The stock had outperformed the market over the past one month till 18 September 2014, rising 17.96% compared with 2.73% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 7.25% as against Sensex's 7.39% rise.

The large-cap company has an equity capital of Rs 2642.93 crore. Face value per share is Rs 10.

The brokerage firm cited capacity expansion and compelling valuations as key reasons for initiating coverage of Indiabulls Power.

On a consolidated basis, Indiabulls Power reported a net loss of Rs 140.80 crore in Q1 June 2014, higher than net loss of Rs 39.35 crore in Q1 June 2013. Net sales surged 1349.7% to Rs 145.55 crore in Q1 June 2014 over Q1 June 2013.

Indiabulls Power focuses on developing, constructing, and operating power projects in India.