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Reliance Power set for February listing

Reliance Power set for February listing
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First Published: Sat, Jan 05 2008. 12 01 AM IST
Updated: Sat, Jan 05 2008. 12 01 AM IST
Mumbai: Reliance Power Ltd, a generating unit of India’s second largest electricity producer by market value, will begin trading in the first week of February following its initial share sale in India, said Anil Ambani the chairperson of Anil Dhirubhai Ambani Group.
Reliance Power plans to raise as much as Rs11,700 crore through an initial public offering (IPO), Uday Kotak of Kotak Mahindra Capital Co. said at a press briefing in Mumbai on Friday. The company will sell 260 million shares at Rs405-450 per unit, Kotak said. Retail investors will get a Rs20 discount in the sale, which will run from 15-18 January, he added.
Parent Reliance Energy Ltd. quadrupled in value last year and was the best performing stock on India’s benchmark index, as the government plans to invest $200 billion (Rs7.9 trillion) in generation and distribution in seven years to sustain record economic growth. Reliance Power also will seek overseas partners who can help provide the necessary equipment.
It also plans to hire 5,000 people, Ambani said. Shares won’t be sold in a pre-IPO placement, he added.
On Friday, Ambani exuded confidence for a “win-win” solution for both the groups headed by him and elder brother Mukesh in the ongoing dispute over supply of gas.
Ambani said the row would not impact the financial closure of the group’s planned gas-based power projects because it has been approached by many producers for long-term supply deals.
“I firmly believe that India will be a gas-long market,” he said. “A lot of gas companies have approached us.”
Reliance Power, a 51% subsidiary of Reliance Energy, has lined up 13 projects, of which 40% would be run on gas. “There is absolutely no challenge for achieving financial closure of our power projects. Financial closure is equally important for a gas producer or a power project. We have access to a very large amount of capital,” he said, denying to comment further on the Reliance Natural Resources Ltd- Reliance Industries Ltd row. In October, the Bombay high court asked both groups to rework the gas supply master agreement within four months.
PTI contributed to this story.
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First Published: Sat, Jan 05 2008. 12 01 AM IST