Company Profile: Indiabulls Power was established in 2007 to capitalize on emerging opportunities in the Indian energy sector. The Company has five thermal power projects under development, which will have a combined installed capacity of 6,615 MW. The Company is also developing four medium-sized hydropower projects totaling 167 MW in Arunachal Pradesh. These hydroelectric projects are proposed to be developed as run-of-river projects. is a subsidiary of IBREL, a part of the Indiabulls Group and is listed on the BSE and NSE. IBREL focuses on construction and property development, project management, investment advisory and construction services, with operations that cover all aspects of real estate development, from the identification and acquisition of land, to the planning, execution, construction and commercialization of their projects (including architecture, design direction and interior design), up to the maintenance and management of their finished promotions, as well as the provision of engineering, industrial and technical consulting services to various industries, including companies dedicated to the construction-promotion of real estate and infrastructure projects.

Company Energy Projects:

o The Amravati Phase I power project will have two supercritical units of 660 MW each, with a combined capacity of 1,320 MW.

o Nashik Power Project will consist of five units of 135 MW each and two units of 330 MW each, with a combined capacity of 1,335 MW.

o Bhaiyathan Power Project will have two supercritical units of 660 MW each, with a combined capacity of 1,320 MW.

o The Amravati Phase II Power Project will have two supercritical units of 660 MW each, with a combined capacity of 1,320 MW.

o The Chhattisgarh Power Project is expected to have two supercritical units of 660 MW each, with a combined capacity of 1,320 MW.

Some reasons to invest that are in favor of Indiabulls Power:

o Solid portfolio of power generation projects

o The Company has entered into long-term power take-off agreements for the Amravati Phase I Power Project and the Bhaiyathan Power Project.

o Association with the Indiabulls Group.

o Strategic partnership with key shareholders

o Experienced management team with a track record of executing projects.

Some of the negative weight reasons:

o The promoters do not have experience in the electricity sector.

o Indiabulls Power will have to rely on state electricity boards for long-term supply.

o Returns on projects won through bids may not be high.

Risks involved:

o There are pending lawsuits against the Administrators of the Company, Promoter Companies and the Promoter Group.

o SEBI and the stock exchanges have taken certain regulatory actions against Indiabulls Securities Limited.

o Some of the Subsidiaries and the Promoter Group have incurred losses and/or have had negative net worth in the last 3 years.

o The Company depends on its subsidiaries to generate profits, and any decrease in the profits of its subsidiaries or in its ability to pay dividends to the Company could materially and adversely affect its results of operations.

o The success of the Company’s energy projects depends on the reliable and stable supply of water to the network

projects In the event of water scarcity, power projects may be forced to reduce their water consumption, which would reduce their power generation capacity.

Objective of the initial public offering:

It is proposed that the Net Proceeds of the Issuance be used by the Company for the following purposes:

o To partially finance the construction and development of Phase I of the 1,320 MW Amravati Power Project;

o Financing of the equity contribution in the Company’s wholly owned subsidiary, IRL, to partially finance the construction and development of the 1,335 MW Nashik Power Project; and

o General corporate purpose.

Some facts and figures:

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Start Date: October 12, 2009

Completion date: October 15, 2009

Issue size: 339800000

Face Value (Rs.) – 10.00

Price Band (Rs.) – 40.00 – 45.00

Offer details

Market Lot – 150

Tick ​​Price (Rs.) – 1.00

Minimum Price (Rs.)- 40.00

Minimum Bid Amount – 150

Maximum Bid Amount: 278635950

Initial Public Offering Rating: This issue has been rated 3/5 by CRISIL Limited, indicating average fundamentals.

Broadcast recorder: Karvy Computershare Private Limited

Book Running Lead Manager(s): Morgan Stanley India Company Private Limited

Is it worth investing?

Indiabulls Power Ltd’s $315 million initial public offering, which will open for subscription on October 12, 2009, has five thermal power projects under development, which will have a combined installed capacity of 6,615 MW. The Company intends to sell the power generated from these projects under a combination of long-term PPAs to industrial and government consumers and on a commercial basis. The Company is also developing four medium-sized hydropower projects totaling 167 MW in Arunachal Pradesh. The Company proposes to use a portion of the net proceeds of the Issuance to partially finance the construction and development of Phase I of the Amravati Power Project and the Nashik Power Project (the “Identified Projects”). Indiabulls Real Estate currently owns 71.4 per cent of the company. UK-based billionaire LN Mittal’s LNM India Internet Ventures holds a 10.7 percent stake, while private equity firm FIM Ltd owns the remaining 17.9 percent. The company also controls one of the largest coal mines to provide low-cost coal for its plants and received large allocations of coal bonds at last year’s meeting of empowered ministers. Given the higher execution risks associated with power projects powered by the group’s lack of prior experience in setting up or operating a power plant, the issue price appears to be high. But considering the experienced management team with a track record of executing projects, it pays to invest for the long term.