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Reliance Power’s IPO to open on Jan. 15

NEW DELHI: Clearing all the hurdles, Anil Ambani-owned Reliance Power Limited’s (RPL) mega initial public offering (IPO), seeking to raise Rs. 11,500 crore, the highest in the stock market, will open for public subscription on January 15.

(The earlier biggest initial public offering was DLF, which mobilised Rs. 9,625 crore.)

According to a company release, the company has filed the red herring prospectus (RHP) with the Registrar of Companies for its IPO. Reliance Power has fixed the price band at Rs. 405-450. However, in order to enable large participation by retail investors, the company has decided to offer a discount of Rs. 20 per share to retail investors, about 5 per cent of the issue price, the release said. It has also fixed convenient payment terms for all categories of investors.

While qualified institutional buyers are required to pay 10 per cent on application, high networth individuals and retail investors have the option to pay Rs. 115. The balance amount would be payable on allotment. The IPO is scheduled to open on January 15 and close on January 18.

The company proposes to issue 26 crore equity shares of Rs. 10 each, including promoters’ contribution of 3.2 crore shares which will be allotted at the IPO price to the promoters. The balance 22.8 crore equity shares will constitute the net issue to the public.

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