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Monday, Oct 01, 2007
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Reliance Power to go public

Special Correspondent

MUMBAI: The Board of Reliance Energy on Sunday approved the proposal by Reliance Power Limited, a company promoted by Reliance Energy Limited and Reliance Anil Dhirubhai Ambani Group, to undertake an Initial Public Offering (IPO) of equity shares of the company.

“The draft red herring prospectus for the IPO will be filed by Reliance Power Limited with the Securities and Exchange Board of India (SEBI) shortly,” said a release from Reliance Energy.

Reliance Power Limited is pursuing various gas, coal and hydro power generation projects in different parts of the country. The proposed IPO is to fund the development of these power projects.

“Reliance Power Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, a public issue of its equity shares and to file a draft red herring Prospectus with SEBI,” the release added. The IPO is expected to be in the range of around Rs. 12,000 crore, according to market sources.

Reliance Power IPO will be the largest ever in the Indian stock market, exceeding the size of realty major DLF’s recent IPO that raised close to Rs. 9,000 crore. Reliance Power recently bagged the 4,000-mw Sasan power project.

Reliance Energy, a part of Reliance - Anil Dhirubhai Ambani Group, is India’s leading private sector utility company. Reliance Anil Dhirubhai Ambani Group currently has market capitalisation of over Rs. 2,00,000 crore, net worth in excess of Rs. 40,000 crore, net profit of Rs. 5,000 crore and zero net debt.

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