The market regulator, SEBI (Securities & Exchange Board of India) has okayed Indiabulls Power's IPO (initial public offering). This subsidiary of Indiabulls Realty is expected to raise around Rs 2,000 crore.

The proceeds of the issue will be used to part finance the construction and development of the 1,320 MW Amravati Power Project Phase – I (Rs 775 crore from the issue) and for funding equity contribution in the company’s wholly owned subsidiary, IRL, to part finance the construction and development of the 1,335 MW Nashik Power Project (Rs 660 crore from the issue).

The company has filed its DRHP (draft red herring prospectus) with the SEBI on July 15, 2009. It is coming out with an IPO of 33.98 crore equity shares of Rs 10 each. There will also be a green shoe option of up to 50,900,000 equity shares, which will take the issue size to 39.07 crore shares. Before the green shoe option, the issue will constitute 16.98% of the fully diluted post issue paid-up capital of the company and post the green shoe option - 19.06%.