Adani Power, which raised $630m in one of the biggest initial public offerings in India in the past 18 months, made a disappointing market debut on the Bombay Stock Exchange on Thursday, with shares in the power generation group falling below the offer price at one stage.

The group, which delayed its share sale last year following the global stock market rout, is testing the water for Indian IPOs after the market all but dried up amid the global economic downturn. Adani’s shares, which fell as low as Rs98.50 against an offer price of Rs100, eventually closed virtually flat at Rs100.5. The Bombay Stock Exchange’s benchmark Sensex finished up 1.4 per cent.

Girish Solanki, an analyst at Angel Broking in Mumbai, said that, at Rs100, the stock appeared expensive even in the event of Adani’s bringing all its power stations on stream.

But he said the lacklustre opening also reflected nervousness in global markets in recent weeks, which have led to falls in markets such as China as well as India.

Adani is among a number of Indian power companies to turn to the equity markets to raise capital in recent months, spurred on by improving sentiment and a rebound in the Sensex since its March lows.

National Hydro Electric Power Corp, the country’s largest hydro power generator, last week raised $1.25bn in a listing that was priced at the top of its indicative range and, like Adani’s listing, was about 20 times subscribed. It will debut in early September.

India has had relatively few listings of any size since Anil Ambani’s Reliance Power raised $3bn in January 2008 in India’s largest IPO.

That listing fell 17 per cent on its opening day of trade in February 2008 and has never closed above its debut price.

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