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Reliance Power IPO gets oversubscribed 69 times

Reliance Power IPO gets oversubscribed 69 times
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First Published: Fri, Jan 18 2008. 11 02 PM IST
Updated: Fri, Jan 18 2008. 11 02 PM IST
Mumbai: Anil Ambani’s Reliance Power Ltd, which sold out its record Indian initial public offering (IPO) in less than a minute, attracted orders for 69 times the stock on offer on the final day, signalling it may raise the maximum $3 billion (Rs11,790 crore) sought.
Investors ordered shares worth as much as $180 billion, equivalent to the combined market value of the Portuguese and Czech stock markets, according to data on ‘Bloomberg’.
“It is clearly a record, no question about it,” said Chakri Lokapriya, who is trying to add Reliance Power to the $575 million of Indian stocks he manages at BNP Asset Management in London.
“There’s a clear recognition that infrastructure, especially power, is a key area to invest in and that investors have faith in the company.”
The offering will increase the wealth of billionaire chairman Anil Ambani, already India’s third richest man after his Reliance Energy Ltd quadrupled in value last year. Reliance Energy, India’s second largest electricity producer by value, has lost 13.84% in the past one week on the Bombay Stock Exchange , the maximum among all Sensex stocks. Reliance Energy owns 50% of Reliance Power. Post IPO, its stake will come down to 45%. Anil Ambani’s stake will come down to 45% from 50%.
Ambani is raising funds to build 13 power plants with 28,200MW of generating capacity over five years, a third of India’s planned new projects.
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First Published: Fri, Jan 18 2008. 11 02 PM IST
More Topics: India | Company | Reliance | Anil Ambani | IPO |