Utility Indiabulls Power Ltd's up to $380 million initial public offering was subscribed within half an hour of opening on Monday, reinforcing the robust appetite for new share offerings.

By 11:07 am today, the sale was subscribed just over two times, data from the stock exchanges showed.

The IPO of Indiabulls Power, a unit of Indiabulls Real Estate and which counts billionaire L.N. Mittal as investor, follows strong subscriptions for the past three sales in the country that together raised almost $2.5 billion.

On Sunday, sources said Indiabulls Power would issue 18 percent of the issue at the top end of the 40-45 rupees price band to five anchor investors including Nomura.

"We recommend subscribe for listing gains. When you look at the capacity that is being financialy tied up, then the per megawatt capital for the company is cheaper compared with its peers," Nishna Biyani, research analyst, Prabhudas Lilladher.

"But for the long term we feel all the private companies will be flooding markets for the funds."

Indiabulls Power is developing five thermal power plants in western and central India, with total capacity of 6,600 megawatts, and will use the issue proceeds to fund two projects.

A more than 70 percent jump in the BSE stock index coupled with net foreign fund flows of $12.8 billion into Indian stocks so far this year have sparked a flurry of new share sales. More than $15 billion of shares have been sold so far this year.

"It is refreshing to see Indiabulls Power price its IPO at a 40 percent discount to other private sector developers," brokerage Noble said in a note.

The discount was largely due to lack of any operational capacity, likelihood of further equity raising in two years and uncertainty on some power sale contracts, it said.

Morgan Stanley India is the lead manager to the issue, which closes on Oct. 15.

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