Reliance Power IPO to mop up Rs 10,500-11,500 cr, opens Jan 15

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New Delhi, Jan 3: Anil Ambani-promoted Reliance Power Ltd will enter the capital markets on January 15 to raise about Rs 10,500-11,500 crore to fund the construction of power plants across the country.

The firm, in which Reliance Energy has a 50 per cent stake, received the final approval from the Securities and Exchange Board of India (SEBI) yesterday for issuing 260 million shares. The price band of the issue is in the range of Rs 405-450, a statement said.The country's biggest IPO will close on January 18. Reliance Power also filed the Red Herring Prospectus (RHP) with the Registrar of Companies, Maharshtra, Mumbai (ROC) yesterday, for its proposed IPO. The ROC has taken on record the RHP, paving the way for the IPO.

To enable large participation by retail investors, Reliance Power will offer a discount of Rs 20 per share to the retail investors, that is five per cent of the issue price. Reliance Power has also fixed convenient payment terms for all categories of investors.

While QIBs are required to pay 10 per cent on the application, the HNIs and retail investors will have the option to pay Rs 115 on the application, which is only about 25 per cent of the issue price. The balance amount will be payable on allotment Reliance Power proposes to issue 26 crore equity shares of Rs 10 each, including a promoters' contribution of 3.2 crore equity shares which will be allotted at the IPO price to the Promoters.

The balance 22.8 crore equity shares would constitute the net issue to the public.

The issue will constitute 11.5 per cent and the net issue will constitute 10.1 per cent of the post-issue paid-up equity capital of Reliance Power.

Reliance Power is currently engaged in the construction and development of various gas and coal based thermal power projects and hydro power projects in various parts of the country, of over 28,000 MW capacity - the largest development pipeline in the country.

The issue proceeds are proposed to be utilised for funding subsidiaries to part-finance the construction and development costs of the various projects under development and for general corporate purposes.

The equity shares of the Company are proposed to be listed on the Bombay Stock Exchange Ltd (BSE) and the National Stock Exchange of India Ltd (NSE).

The IPO is managed by UBS, ABN AMRO, JPMorgan, Deutsche Bank, Enam Securities, ICICI Securities, JM Financial and Kotak Mahindra Capital, while Macquarie and SBI Capital Markets are co-managers.


UNI

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