Reliance Power IPO to hit market on Jan 15

Jan 05:  A very much-awaited shares of Reliance Power Limited is going to hit the market from January 15 in the form of Initial Public Offers and likely to be listed on the bourses from the first week of February, announced by the Anil Dhirubhai Ambani in a statement released here on January 02, 2008.

This IPO is the biggest public offers stacking shares of 26-crore equity IPO with the upper price band of Rs 405-450 per share of face value Rs 10 per share. The offer closes on January 18.

With this largest IPO, Anil Ambani, the Chairperson of Anil Dhirubhai Ambani Group, ADAG firm is expecting to collect Rs.10,530 -11,700 with the lower and upper price band, if all the IPO would be grasped. This would carry the ADAG chairman on the second seat of the richest Indian followed by his own big brother Mukesh Ambani, who is at present on the top. Though Anil Ambani is still on the second position, yet RPL (Reliance Power Ltd.) can establish him on the top seat if the share of RPL booms in stock market, as bankers believes.

Out of total released shares staking 260-million will be offered to the public on a proportional basis to qualified institutional buyers (QIB) by at least 60 per cent of the net issue, while non-institutional bidders will get 10 percent and remaining 30 percent of the share will be issued to retail investors.

RPL would own 50 percent of the share while rest 50 percent will be diversified between the promoters of the ADAG, institutional buyers, non-institutional bidders and public.

Through this IPO, RPL will reduce the stack of Reliance Energy Limited up to 45 percent as RPL is the subsidiary of REL that has already surging the stock market with its outer performing performance. The released IPO would be the 10.1 percent asset of the RPL's total capital.

Announcing to release this IPO, Anil Ambani said to the media that the collected amount would be invested in RPLs six power projects across the country to fulfill the requirement of power near coming future. Each project varies on gas, coal and hydropower whose completion dates are scheduled from December 2009 to March 2014. All these projects will function individually under one roof RPL.

Reliance Power is currently developing 13 medium and large power projects constitutes a cumulative capacity of 28,200 megawatts that would fulfill a large portion of conventional energy while it is also targeting to enter in to wind energy and atomic power sector, as per Reliance official statement said.

The Local credit rating agencies CRISIL and ICRA have given four out of five points quoting that “the fundamentals of the issue are above average in relation to other listed equity securities in India .�

For the retail investors, “Reliance has offered Rs. 20 discount on each share of RPL IPO. Besides this the retail investors can also submit the IPO form with the DD of Rs.115 whereas the balance amount will have to submit after getting allotted the share�, said Anil.

“Power generation growth will be similar to what India witnessed in the telecom sector," said Anil. " India requires large scale investment in the power sector. According to a recent Central Electrical Authority report, demand for energy is expected to grow by eight percent annually in the five years to 2012," he added.

Before this giant IPO, KP Singh, the Chairperson of DLF group had offered the biggest IPO that collected Rs.9,600 crore last July.