Mumbai, Jan 4: The mother of all Initial Public Offers (IPO) in the Indian Capital Market, floated by the Reliance Power, will open on January 15 to raise an estimated Rs 11,500 crore to fund its future power projects.
The IPO, which will close on January 18, comes with an offering of 228 million equity shares of Rs.10 per share in a price band of Rs.405 to Rs.450 each on a 100 per cent book building basis. Speaking to newsmen here today, Reliance Anil Dhirubai Ambani (ADA) Group Anil Ambani expressed confidence over the success of the largest ever IPO in the country and said retail investors, who would get 30 per cent of the issue, would enjoy a Rs 20 discount per share.
This he indicated was a befitting gesture to mark the 75th birth annivesary of his father Dhirubai Ambani, who signalled the mass retail equity cult in the country. ''this is the least I could do to the retail shareholders''.
Ruling out firmly that there would not be any pre IPO placement despite huge requests, Mr Ambani said ''The Issue, to be closed on January 18, was being floated to part finance 9000 MW of the 28000 MW power projects Reliance Power would undertake with the first open 600 MW Rosa Phase one in Uttar Pradesh expected to go on stream late 2009.'' Replying to a question, Mr Ambani said Reliance Power would be listed in the BSE in the first week of February.
Mr Ambani said Reliance Energy would hold 45 per cent of the equity of Reliance Power post issue and would be the parent company. Reliance Power would take up each of the power projects as a special purpose vehicle.
Projects that included for funding with the proceeds included the 600 MW Rosa Phase II, 300 MW Butibori plant in Maharashtra, 3960 MW Sasan project, 1200 MW Shahapur Coal (Maharashtra) and 400 MW Urthing Sobla (Uttarakhand) Replying to a question, Mr Ambani did not rule out the possibility of looking into investment opportunities in the Sasan ultra Mega Power project if the opportunity came by. Much depended on the government policies, he added.
Referring to the growth of the Reliance Group, he said his father chose to follow the Kapada path in the ''roti kapada aur makan'' slogan prevailing then. Subsequently, mobile was added to this and the year of 2008 will see the Reliance ADA group adding the power sector.
He firmly ruled out his company joining the bandwagon of Real Estate developers and said focus would continue on the existing sectors of communication, entertainment, power and energy.