Tuesday, January 15, 2008

Reliance Power IPO subscribed 5.36 times

MUMBAI: The initial public offering of Reliance Power promoted by Anil Ambani got over-whelming response in the primary market. According to sources, the 26 crore issue was subscribed 5.36 times at the higher price band of Rs 450 in just few minutes of issue opening.

According to an official familiar with the book building process, the IPO has been subscribed 5.36 times. BSE-NSE combined issue has received bids for 55,000 crore shares.

The company has come out with an IPO in the price band of 405-450 per share. The issue opened today and will close January 18.

At the lower end of the price band the company would raise Rs 10,530 crore and at the higher price band it would garner Rs 11,700 crore.




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As per the NSE website, till 10:10 am, IPO was subscribed 1.48 times in 10 minutes of the issue opening. The 22,80,00,000 share offering has received 33,67,74,330 bids. Total bids received at cut-off price were 45,015.

Retail investors have been offered a discount of Rs 20 per share, which implies their net cost of subscription will be Rs 430 per share, if they choose to bid at Rs 450 per share. Retail investors also have the option of making part payment of the application monies, wherein they will have to put in only Rs 115 per share upon application. The balance will be called upon, post the allotment of partly paid shares.

Rating agency Crisil assigned an above average 4-on-5 rating to the proposed initial public offer of Reliance Power. ICRA has assigned IPO Grade 4, indicating above average fundamentals, to the IPO. ICRA assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 poor.

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 JP 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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