Shares of Indiabulls Power closed at Rs 39.25 on the BSE, a 12.80% discount over the initial public offer price of Rs 45.

The stock debuted at Rs 44.95, a 0.10% discount over the issue price. The counter clocked 10.27 crore shares on the BSE. The stock hit a high of Rs 45.50 and a low of 35.

The company had fixed its initial public offering (IPO) price at the top end of the IPO price band of Rs 40-45. The IPO, which closed on 15 October 2009, ended with 21.84 times oversubscription. The IPO garnered bids for 608.62 crore shares as against 27.86 crore shares on offer.

The 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.

Indiabulls Power issued a total of 39.07 crore shares in a price band of Rs 40-45 per share in the IPO, which remained open between 12 and 15 October 2009.

On 9 October 2009, Indiabulls Power sold the maximum allowed 30% of the tranche reserved for qualified institutional buyers (QIBs), or 18% of the total IPO, to the eight anchor investors at a price of Rs 45 a piece.

Approximately 2.1 crore shares, or 34% of the shares available to anchor investors went to Copthall Mauritius Investment, while BNP Paribas and the Nomura India Investment FundMother Fund (together with a trust company) bought 1.05 crore and 1.08 crore shares respectively. The other anchor investors were Indea Capital, the Norwegian government petroleum fund, Credit Suisse Singapore and Macquarie Bank.

Indiabulls Power, a subsidiary of Indiabulls Real Estate, has been established with the objective to develop, construct and operate power projects. Currently, the company has no operational power plant. The first unit will be operational only by June 2012.

The company is currently executing five coal based power projects totalling 6,615 megawatt (MW) generation capacities. The company proposes to set up power plants in Maharashtra (Amravati and Nashik) and Chhattisgarh (Bhaiyathan). The management has indicated that the first power plant would be commissioned at Nashik in 2011-12.

The proceeds of the proposed IPO will part finance the construction and development of the 1,320 MW Amravati Power Project Phase I, fund equity contribution in the company's wholly owned subsidiary to part finance the construction and development of a 1,335 MW Nashik Power Project, apart from general corporate purposes.