The Adani Power Ltd IPO closed on Friday, having been over-subscribed over 21 times. The Rs 3,000 crore issue, the second biggest public offer after that of Reliance Power in 2008, attracted good investor response and received commitment worth of Rs 63,000 crore from all categories of investors.

According to sources, the portion reserved for qualified institutional buyers (QIB) got subscribed 39 times, non-institutional investors by 8.5 times and retail investors by 2.2 times. Most marketmen said the attractive price band of the IPO enthused investors besides the overall recovery in the secondary market that is getting reflected in the primary market. The price band of the IPO has been fixed between Rs 90-100 and the company planned to raise Rs 3000 crore. The company is expected to get listed on bourses on August 20.

APL IPO was the first to have six anchor investors after Sebi announced guidelines for anchor investors, attracting leading players like Credit Suisse and T Rowe Price a day before the issue opened on Tuesday.

August 1, 2009

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Riding on an all-round performance in its port business, the Mundra Port and Special Economic Zone (MPSEZ), a listed entity of the Rs 30,000-crore Adani Group, has posted a 76% jump in PAT to Rs 170.76 crore for the quarter ended June 30, 2009.

The country’s largest private port, located in the Kutch region of Gujarat, outperformed the Indian ports during the last quarter. While major Indian ports have together shown a growth of 1.9%, Mundra Port has shown a rise of 24% in cargo volumes, B Ravi, the chief financial officer of the company, told ET on Thursday.

Revenues stood at Rs 306.77 crore, up from Rs 253.73 crore, during the same period last year while PAT rose to Rs 170.76 crore from Rs 96.80 crore during the same period last year. Speaking first to ET NOW, Mr Ravi said: The total cargo handled at the port during the quarter was 9.89 MMT, compared with the 7.98 MMT handled during the corresponding period last year. While handling of bulk cargo has gone up 53%, with coal and fertiliser being the important contributors, crude volumes have risen 17%.

The MPSEZ stock closed at Rs 553.95 on Thursday, up 1.59%, over its previous close of Rs 545.30 on BSE. It touched a high of Rs 564.95. A total of 236,072 shares were traded on the exchange on Thursday.

In the container business, Mundra port also managed to maintain its earlier levels of 217,000 TEUs.In the container business, Mundra port also managed to maintain its earlier levels of 217,000 TEUs. Mundra Port is aiming to emerge as the country’s largest port by 2013-14 in terms of cargo handling. It is aiming to cross 100 million mark by 2013-14 to emerge as the country’s largest port facility.

The port project was initiated in 1998 by the Adani Group as a logistics base for their international trade operations when the sector was opened for the private sector. The group leveraged its primary knowledge of the shipping sector built by its sheer volume of international trade from 1988 to develop the port at Mundra. Today, Mundra port handles close to 30 million tonne of cargo, ranging from bulk cargo such as coal, wheat, fertiliser, steel, edible oil, chemicals, petroleum products, automobiles, etc.

The company has also started the Roll-on-Roll-off pontoon with linking bridge facility, which will help in smooth loading of cars, irrespective of the tide conditions. It is the first fully-dedicated car terminal in South Asia and would attract a number of car manufacturers looking to western countries for exports. Leveraging the advantage of the port, the MPSEZ is being developed over an area exceeding 100 square km as a privately-operated multi-product, large format, diversified SEZ. During the quarter under reference, the company has completed the construction of around 1000 apartments at its SEZ. A 100-bed multi-speciality hospital has been constructed and the Sterling Group is setting up operating facilities. The Delhi Public School too started a primary school within the SEZ.

July 31, 2009

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It began as a memorial to victims of the devastating earthquake. Today, as the GK General Hospital in Bhuj — which was flattened by the temblor on January 26, 2001 — awaits its first batch of medical students in August, it is set to pave the way for a unique experiment: This will be the country’s first PPP in the sector of medical education.

Forged between Adani Education and Research Foundation and the Gujarat government, this could be a trend-setter in providing world class medical education as well as offer speciality treatment at rates the common man would have to pay in a government hospital. Locally known as Atal Mahal, after it was rebuilt by the Prime Minister’s Relief Fund through Atal Bihari Vajpayee’s personal interest in the project, the opulent Rs 100-crore hospital building remained virtually non-functional for about seven years, mainly due to the lack of doctors, till the Gujarat government began looking for private partners in 2008.

Adani Group will invest Rs 150 crore as a part of its corporate social responsibility to start the Gujarat Adani Institute of Medical Sciences (GAIMS). We plan to increase the capacity of the hospital from 300 beds to 750 to meet the Medical Council of India norm to start a medical college, says GAIMS director Bakul Dholakia, former head of IIM-Ahmedabad.

While the college will start operations next month, taking in its first batch for academic year 2009-10, the building will be completed in March next year. Expansion of the hospital will begin in December 2009. Of the 750 beds, 300 will be available at low cost for the common man. Remaining 450 will be used for other patients who will pay higher rates. This project could well be a trend-setter for more PPPs in medical education. It’ll help improve the health care system and provide specialists in rural areas, says health and family welfare minister Jay Narayan Vyas.

This will show the way to others for more private-public partnerships in medical education says Jay Narayan Vyas, MINISTER FOR HEALTH AND FAMILY WELFARE

An aritst’s impression of the medical college 300 beds in the hospital will be available at low cost to the common man while the other 450 will be superspeciality beds that will generate revenue says Bakul Dholakia DIRECTOR, GUJARAT ADANI INSTITUTE OF MEDICAL SCIENCES

July 24, 2009

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Despite the highly volatile stock market, the market capitalisation of Gujarat-based Adani Enterprises has jumped to Rs 33 billion in last one week. The company’s scrip has soared by Rs. 135.25 or more than 19 per cent in a week and ended up at Rs 824.10 at Bomaby Stock Exchang.

The reason behind the surge is said to be the IPO of Adani Power which is slated to hit the market in the third week of July.

After registering a steep rise of over Rs 33 billion in just a week, the total market capitalisation of Adani Enterprise has reached Rs 2.03 trillion. "Among the Gujarat listed-companies, Adani Enterprise have been on corefront of growth. While the market value of the promoters’ stake has risen, the investors too have reaped the benefit as their holdings have accordingly ballooned," said head of Anagram Securities research V K Sharma.

Meanwhile, the Securities and Exchange Board of India (SEBI) has cleared Adani Power Limited’s (APL) initial public offer (IPO). The company is expected to hit the capital market by the third week of July. APL, which had postponed its IPO due to bad market condition in September 2008, is now planning to raise over Rs 3,000 crore for financing its 6600 MW power plants at Mundra and Tiroda in Gujarat and Maharashtra respectively.

According to the plan, APL is offering 33.77 crore equity shares through the IPO. The company is expected to charge a premium of around Rs 120 per share of Rs 10, sources said. The company is making a total investment of Rs 28,000 crore for generating 6600 MW of power. Out of the total required investment, the company has already tied up debt worth Rs 22,676 crore and promoters have already invested Rs 3500 crore for the project.

June 30, 2009

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The first unit of Mundra power plant in Gujarat is set to start by May 20. The Adani Power, an ancillary of the Adani Group, is ready to generate 330 MW out of 4620 MW capacity in Mundra power plant. The country’s largest and world’s third largest thermal power plant, the Adani power plant will be completed by the end of 2012.

"At Mundra power project, the total capacity is 4620 MW. It is in four stages wherein the first unit is likely to be commissioned on May 20. And thereafter, all units will be commissioned one after the other every three months. These four units are basically meant for supplying 1000 MW power which we have committed through the PPA to Gujarat," said Rajkumar Gupta, director, Adani Power Limited.

The company has already signed Power Purchase Agreements with the Gujarat Government. The project will also give power to Maharashtra, Haryana and Rajasthan at later stages. The company has also set up a 413 km, 400 KV Mundra-Dehgam dedicated transmission line for evacuation of power from Mundra power station. The contract to set up the transmission line was taken up by the Siemens, a German company. The technology and the equipment for the project are from China.

At least 10,000 workers including labourers are employed at the site. Ten per cent of the employees are from China. At the Adani Power, 9000 MW power generation is targeted in the coming five years with a 100 per cent growth inputs in every phase. This project is much bigger than the Ultra Mega Power Plants (UMPP) set up across the country. Power generation in the country is steadily improving every year.

May 26, 2009

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