Reliance Power IPO fully subscribed

Reliance Power IPO fully subscribed
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First Published: Tue, Jan 15 2008. 11 05 AM IST
Updated: Tue, Jan 15 2008. 11 05 AM IST
Mumbai: Reliance Power raised $3 billion in India’s biggest-ever initial public offering on 15 January, with the sale fully subscribed within a minute and covered 2.5 times within 25 minutes of its opening.
Most of the bids came at Rs450, the upper end of the price band making it the country’s largest ever IPO with an estimated proceeds of Rs11,700 crore, bankers close to the public issue said.
The founder, billionaire Anil Ambani, on Monday had bought the owners’ stake of 32 million shares at Rs450 per share.
A Reliance Power spokesman earlier said the IPO had been fully subscribed in the first minute after it opened.
According to latest data available, the IPO received bids worth over Rs40,000 crore in the first five minutes of the book building process.
The public offer of 26 crore equity shares, estimated to raise close to Rs11,700 crore, is being billed as the largest ever IPO in the Indian capital market.
The company is offering the equity shares at a price band of Rs405-450 per share, for which the book building process commenced on Tuesday.
The bidding for allotment of shares in the IPO would close on 18 January.
The total size of the IPO is of 26 crore equity shares, including the promoters contribution of 3.2 crore shares. The net issue to the public constitutes 22.8 crore shares.
Reliance Power has a diversified portfolio of 13 medium and large-sized power projects, under development and strategically located at various places across India, the company had said in a statement.
With an installed capacity of 28,200 megawatts, the Reliance Power IPO will significantly contribute to reducing the demand-supply gap for the power in the country at competitive rates, it added.
The Anil Dhirubhai Ambani Group (ADAG) has announced plans to invest Rs1,00,000 crore in the power business, while it is aggressively bidding for road projects and as well as in the transport sector.
Group company Reliance Energy has bid for the Rs50,000 crore Ganga Expressway Project in Uttar Pradesh.
It is also bidding for airports at Udaipur and Amritsar and is in the race for the ambitious Mumbai Trans Harbour Link project.
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First Published: Tue, Jan 15 2008. 11 05 AM IST