Rel Power IPO price fixed at Rs 450 for retail investors

Mumbai, Jan 19 (UNI) Anil Dhirubhai Ambani Group's Reliance Power, which has set a record in the history of capital market, has fixed the issue price at Rs 450 per share.

For its retail investors, however, it will be offered at Rs 430 each.

''The board has approved the proposal of fixing the issue price at its top end at Rs 450 per share for the Reliance Power issue, with a discount of Rs 20 per share for retail investors,'' ADAG chairman Anil Ambani said here today.

''If we assume it lists at the issue price of Rs 450, the market capitalisation for the group will be around 100 billion dollars,'' he said, adding that it will lead Reliance Anil Dirubhai Ambani Group to the second largest in India in terms of market capitalisation.

The five top public issues in the past were those by Mundra Port, Power Grid Corp, Reliance Petroleum, Idea and Power Finance Corp.

According to Mr Ambani, the issue was subscribed over 73 times, while bids recieved by the qualified institutional buyers were 83 times over the set limit and that for retail buyers was subscribed 14.4 times over.

The issue received record subscription of Rs 7,50,000 crore (190 billion dollars), which is the largest-ever subscription in an IPO in the history of the global capital markets, he said.

Reliance Power had proposed to use the proceeds in developing power projects across the country, which may add about 28,200 MW of capacity to the country's power grids in the next ten years.

As per company official sources, at least 13 power projects are in the pipeline.

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