Anil Ambani launches IPO roadshow from Ahmedabad

Written by:
Subscribe to Oneindia News

Ahmedabad, Jan 5: Anil Dhirubhai Ambani Group (ADAG) chairman Anil Ambani today launched the road show for the Reliance Power Limited's Initial Public Offer from Ahmedabad which will open on January 15 to raise an estimated Rs 11,500 crore to fund future power projects.

Addressing mediapersons here today, Mr Ambani said that Ahmedabad is the first place outside Mumbai where he has chosen to remain physically present with regard to the IPO as ''I have an emotional attachment and memories associated with this city. Besides, our family hails from Gujarat''. He said this is the largest-ever public offer in the history of Indian capital market involving Rs 10,300 to 11,500 crore.

He said that the IPO, which will open on January 15 will close on January 18. It 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. Reliance Power will be listed on the BSE and NSE in the first week of February.

Mr Ambani said that out of the 70 lakh investors of Reliance, 20 lakh investors reside in the state of Gujarat. ''I would have liked to offer 100 per cent of Reliance Power IPO to retail investors but could not do so in view of the regulations. Hence, we are offering 30 per cent of the issue size to retail investors,'' Mr Ambani said.

''We are the first company to offer five per cent discount to the issue to retail individual bidders as a small gesture on the 75th birth anniversary of my late father Dhirubhai Ambani who signalled the mass retail equity cult in the country,'' he added.

''Our companies are growing faster and we are sharing the wealth with all our shareholders, especially the small retail groups,'' Mr Advani said. According to the 17th EPS report by the Central Electricity Authority, demand for energy is expected to grow at an average annual rate of 8 per cent during the 11th Plan period and at an average annual rate of 9 per cent during the 12th Plan period, he pointed out.

With the Government planning to add close to 80,000 MW of power in the next five years, power infrastructure will play a major role to achieve the projected GDP growth of over nine per cent, Mr Advani said, adding, ''We have 28,000 MW power project on the pipeline, but that is not enough considering the potential of double digit GDP. It is just the beginning of the journey.'' He said Reliance Power is presently developing thirteen medium and large sized power projects with a combined planned installed capacity of 28,200 MW. The projects are planned to be diverse in geographic location, fuel type, fuel source and off-take, and each project is planned to be strategically located near an available fuel supply or load centre, he said.

The proceeds of the IPO will be used amongt other things, towards funding subsidiaries, to part finance the construction and development of certain projects -- 600 MW Rosa Phase I and 600 MW Rosa Phase II in Uttar Pradesh, 300 MW Butibori in Maharashtra, 3960 mw Sasan in Madhya Pradesh, 1200 MW Shahpur in Maharashtra and 400 MW Urthing Sobla in Uttarkhand, he said.



Please Wait while comments are loading...