Mumbai: Anil Ambani Group firm Reliance Power will give the retail investors a 5% price discount in its forthcoming IPO, through which the company will raise up to Rs11,700 crore, merchant bankers said.
The Initial Public Offer (IPO) is expected to hit the capital market between January 15-18 with a price band of Rs405-450 per share, the bankers close to the development said.
Based on the upper limit of the price band, the company would raise Rs11,700 crore with the sale of 26 crore shares in the public offer. This would be the biggest ever IPO in India, surpassing the public issue of realty giant DLF that raised about Rs9,000 crore last year.
This is believed to be the first to offer a discount in the IPO price for retail investors.
Rating agency Crisil assigned an above average 4-on-5 rating to the proposed initial public offer of Reliance Power.
Reliance Power filed the draft prospectus for its IPO in the first week of October 2007 and received the go-ahead from the market regulator SEBI last week on 28 December.