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Reliance Power files Red Herring Prospectus with ROC

Reliance Power files Red Herring Prospectus with ROC
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First Published: Thu, Jan 03 2008. 09 11 AM IST
Updated: Thu, Jan 03 2008. 09 11 AM IST
Mumbai: Reliance Power Limited filed the Red Herring Prospectus (RHP) on 2 January with the Registrar of Companies (ROC) in Mumbai for its proposed Initial Public Offering (IPO). The ROC has taken on record the RHP, paving the way for the IPO.
Reliance Power has fixed the price band for the IPO at Rs405 - 450 per share. To enable large participation by retail investors, Reliance Power will offer a discount of Rs20 per share to the retail investors, i.e. approx. 5% of the Issue Price.
Reliance Power has fixed convenient payment terms for all categories of investors. While QIBs are required to pay 10% on the application, the HNIs and retail investors will have the option to pay Rs115 on the application, i.e. only approx 25% of the issue price. The balance amount will be payable on allotment.
The IPO is scheduled to open on 15 January and will close on 18 January. Reliance Power, through this IPO proposes to raise Rs10,500 - 11,500 crores - the largest IPO in the history of the Indian capital markets. Reliance Power proposes to issue 26 crore equity shares of Rs10 each including a promoters’ contribution of 3.2 crore equity shares that shall be allotted at the IPO price to the Promoters. The balance 22.8 crore equity shares would constitute the net issue to the public. The Issue will constitute 11.5% and the Net Issue will constitute 10.1% of the post-Issue paid-up equity capital of Reliance Power.
Reliance Power is part of the Reliance Anil Dhirubhai Ambani group and is currently engaged in the construction and development of various gas and coal based thermal power projects and hydro power projects in various parts of the country, of over 28,000 MW capacity - the largest development pipeline in the country.
The Issue proceeds are proposed to be utilized for funding subsidiaries to part-finance the construction and development costs of the various projects under development and for general corporate purposes.
The equity shares of the company are proposed to be listed on the BSE and the National Stock Exchange of India Limited.
Kotak Mahindra Capital Company Limited, UBS Securities India Private Limited, ABN AMRO Securities (India) Private Limited, Deutsche Equities India Private Limited, Enam Securities Private Limited, ICICI Securities Limited, JM Financial Consultants Private Limited and J.P. Morgan India Private Limited are acting as the book running lead managers to the Issue whilst Macquarie India Advisory Services Private Limited and SBI Capital Markets Limited are acting as Co-Book running lead managers. Amarchand & Mangaldas & Suresh A. Shroff & Co. is advising the company whilst Cleary Gottlieb Steen & Hamilton and J. Sagar and Associates are advising the BRLMs and CBRLMs in relation to the issue.
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First Published: Thu, Jan 03 2008. 09 11 AM IST