MUMBAI: When Reliance Power (REPL) lists on the bourses in February, it would be the first company from the ADA group to tap the capital market, after Anil Ambani split with his elder brother Mukesh. Once REPL is listed, market expects the ADA group to become the second largest business house in terms of market capitalisation. As of now, Mukesh's group, whose interests range from textiles to oil exploration, is the largest business group in India.
On Friday, Anil kicked off the maiden public offering for REPL — slotted to be India's largest IPO — that would raise up to Rs 11,560 crore from 26 crore shares of Rs 10 each. Being offered in the price band of Rs 405-450, the IPO opens on January 15 and would close on January 18. The company intends to use the proceeds to fund the various power projects it is setting up across the country.
REPL has made its offering retail-investor friendly by offering a discount of Rs 20 on the final offer price. Also, retail investors will have the option to pay Rs 115 per equity share at the time of application, the balance will have to be paid once shares are allotted. Ambani said given a choice he would have liked to offer 100% of the shares to be sold in the IPO to retail shareholders, but could not do so due to regulations. "Unfortunately, only 30% of the issue size could be offered to retail investors," he said.
However, unlike a number of other companies that tapped the market over the last few years and did pre-IPO placement to large investors, REPL has no such plans.
At present, REPL is developing medium and large sized power projects with a total capacity of 28,200 MW. The company is in talks with global firms to source critical equipment for the power plants. Ambani, however refused to divulge names of the global companies his firm is in talks with.
As part of the group's strategy in energy business, it plans to enter nuclear power and wind energy. In case of the latter, the group has a small presence in select pockets of the country. Regarding long term coal supply arrangements, REPL is in talks with various companies in Indonesia, South Africa and Australia.
Anil said the power generation capacity is not hinged on the outcome of the ongoing legal case between hid group company RNRL and RIL, controlled by his elder brother Mukesh.
On Friday, Anil kicked off the maiden public offering for REPL — slotted to be India's largest IPO — that would raise up to Rs 11,560 crore from 26 crore shares of Rs 10 each. Being offered in the price band of Rs 405-450, the IPO opens on January 15 and would close on January 18. The company intends to use the proceeds to fund the various power projects it is setting up across the country.
REPL has made its offering retail-investor friendly by offering a discount of Rs 20 on the final offer price. Also, retail investors will have the option to pay Rs 115 per equity share at the time of application, the balance will have to be paid once shares are allotted. Ambani said given a choice he would have liked to offer 100% of the shares to be sold in the IPO to retail shareholders, but could not do so due to regulations. "Unfortunately, only 30% of the issue size could be offered to retail investors," he said.
However, unlike a number of other companies that tapped the market over the last few years and did pre-IPO placement to large investors, REPL has no such plans.
At present, REPL is developing medium and large sized power projects with a total capacity of 28,200 MW. The company is in talks with global firms to source critical equipment for the power plants. Ambani, however refused to divulge names of the global companies his firm is in talks with.
As part of the group's strategy in energy business, it plans to enter nuclear power and wind energy. In case of the latter, the group has a small presence in select pockets of the country. Regarding long term coal supply arrangements, REPL is in talks with various companies in Indonesia, South Africa and Australia.
Anil said the power generation capacity is not hinged on the outcome of the ongoing legal case between hid group company RNRL and RIL, controlled by his elder brother Mukesh.
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