Reliance Power all set to hit the capital market with biggest IPO

Jaipur, Jan 6(UNI) Reliance Power Ltd, part of the Reliance Anil Dhirubhai Ambani group is entering the capital market with its first and largest ever public issue on January 15.

Addressing press conference here today Lalit Jalan director of Reliance Power said issue of 260 million equity shares of Rs 10 for cash at a price to be decided through a 100 percent book building process is the first and largest ever IPO to enter the capital market.

Mr Jalan said the issue will constitute 11.5 percent of the post issue paid up capital of the compnay and the net issue will constitue 10.1 percent of the post issue paid up capital of the compnay.

Elaborating the prospects of this sector quoting the 17th EPS report by Central Electricty Authority Mr Jalan said, the demand for energy is expected to grow at an average annual rate of eight per cent during the 11th Plan period(2007-11) and at an average annual rate of nine percent during the 12th plan period.

He said to meet this demand Reliance Power Ltd is presently developing 13 medium and large sized power projects with combined planned installed capacity of 28,200MW, one of the largest portfolios of power generation assets under development in India.

He said its 13 power projects are planned to be diverse in geograpic location, fuel typefuel source and off take and each proejct is planned to be strategically located in Western India(12,220MW), northern India (9,080), north eastern India (2,900)and southern India(4000).

They include seven coal-fired projects (14,620 MW) to be fueled by reserves from captive mines and supplies from India and abroad , two gas fired projects (10,280 MW) planned to be fueled primarily by reserves from the Krishna Godavari Basin off the east coast of India and four hydro-electric projects (3,300 MW), three of them in Arunachal Pradesh and one in Uttarakhand. It intends to to sell the power generated by these projects under a combination of long term and short term PPAs to state owned and priovate distribuion copmpnaies and industrial units.

The proceeds of the issue would be used to among others towards funding subsidiaries to part finance the construction and developemnt costs certain projects which include 600 MW Rosa Phase I(UP),600 MW Rosa phase II(UP), 300 MW Butibiri(Maharashtra), 3,960 MW Sasan(M.P), 1,200 MW Sahapur coal(Maharashtra) and 400 MW Urthing Sobla (Uttarakhand).

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