Mumbai, Sep 29 (UNI) The director board of Anil Ambani-controlled Reliance Energy Limited (REL) will meet tomorrow in Mumbai to consider the proposed USD 3.5 billion initial public offering of REL subsidiary Reliance Power, sources said.
The IPO, which is expected to hit the market in two-three months, would be the biggest ever IPO in the country even ahead of ICCI follow on issue and DLF IPO.
The fund raised will be used to fund the Rs 21,000-crore ultramega power projects of Reliance Power located in Sasan and Rosa in Uttar Pradesh.
According to sources, Reliance Power is expected to offload 15-20 per cent shares for the issue.
Reliance Energy has 50 per cent shares in Reliance Power while the rest is owned by the Reliance -- Anil Dhirubhai Ambani Group.
''Our board will be meeting in Mumbai tomorrow to consider the unlocking of shareholder value,'' an REL spokesperson said.
It is learnt that Kotak Mahindra and J M Financial will be the lead managers for the deal.
The Reliance Energy stocks closed at Rs 1205.50 in the Bombay Stock Exchange (BSE) on Friday, up by 7.9 per cent compared to Thursday's close.
Reliance Energy has an aggregate group revenue of Rs 13,017 crore (USD 3 billion) and total assets worth Rs 12,166 crore (USD 2.80 billion), company sources said.