CORRECTED - CORRECTED-UPDATE 1-Indiabulls Power slumps on stock market debut

(Corrects last word in headline to debut from debt)

* Sharp slump on debut could dampen IPO pipeline

* Traders voice caution on IPO investment (Adds details, quote)

MUMBAI, Oct 30 (Reuters) - Utility Indiabulls Power Ltd (INDP.BO), which raised about $380 million in a heavily subscribed IPO, slumped as much as 22 percent on debut and could hit investors appetite for a long and growing IPO pipeline.

The poor debut of Indiabulls Power, a unit of Indiabulls Real Estate (INRL.BO) and which counts billionaire L.N. Mittal as an investor, comes as a nearly $100 million IPO from cable television firm Den Networks is struggling to be covered, data with the stock exchanges showed.

It also follows tepid openings by Adani Power (ADAN.BO) and NHPC (NHPC.BO) in recent months, although neither fell anywhere near as much as Indiabulls Power.

"Buyers are hurt, have a negative frame of mind as listings so far are far from attractive. I would not recommend them to invest in IPOs," said Chetan Bhatt, a trader at Pragya Securities.

At 0703 GMT the shares in the company, whose IPO was covered nearly 22 times, were at 40 rupees, 11.1 percent below the IPO price of 45 rupees. It listed at 44.95 rupees and hit a low of 35 rupees. The broader BSE index .BSESN was up 1.4 percent.

On Friday, Sterlite Energy, a unit of Sterlite Industries (STRL.BO), filed papers for a 51 billion rupee IPO.

Indian firms have raised $17 billion in share sales so far this year and a clutch of firms have filed regulatory applications to raise more than $10 billion trying to cash in on a stock market rally that has seen the benchmark index .BSESN rise around 70 percent. (Reporting by Pratish Narayanan & Manoj Dharra, writing by Narayanan Somasundaram; Editing by John Mair)