The proposed initial public offering (IPO) of Indiabulls Power, a subsidiary of Indiabulls Real Estate Ltd, is likely to commence on October 12.

Indiabulls Power will offer 33.98 crore equity shares via this IPO via book-building route.

The company plans to raise about Rs 1,500 crore through the IPO, which it utilized to part finance the construction and development of the 1,320 MW Amravati Power Project Phase I, fund equity contribution in the company's wholly owned subsidiary, and for general corporate purposes.

Today, Rating agency CRISIL has assigned IPO Grade "3/5" to the proposed initial public offer of Indiabulls Power Ltd, which indicates average fundamentals. The company has filed the draft prospectus with market regulator SEBI in July this year.

Sources reported that IPO of Indiabulls Power would open on October 12 and close on October 15, 2009.

The recent IPOs in Indian Stock markets have not been able to offer expected returns to investor. Some stocks even slipped below their offer price in first week of listing. Investors are cautious due to weak response from secondary markets.