The Hindu : Business : Reliance Power listing likely in early February

Online edition of India's National Newspaper
Saturday, Jan 05, 2008
ePaper

Business

Business

Reliance Power listing likely in early February

Plans separate arm to manufacture energy equipment

The public offer will open on January 15
There will be no pre-IPO placements

MUMBAI: Billionaire Anil Ambani on Friday said Reliance Power was likely to list on the bourses by early next month, after the country’s largest initial public offer aimed at raising close to $3 billion.

“We are expecting to list in the first week of February,” Mr. Ambani told reporters here while announcing the IPO plans for his group company Reliance Power.

Mr. Ambani denied any pre-IPO placement plans for selling stake in the firm. “There will be no pre-IPO placements, despite a number of requests for such deals,” he said.

Mr. Ambani said he would have liked to offer 100 per cent of the shares to be sold in the IPO to retail shareholders, but could not do so due to regulations.

“Unfortunately, only 30 per cent of the issue size could be offered to retail investors,” he said.

The public offer will open on January 15 and close on January 18. Shares will be sold in a price band of Rs. 405-450.

The market capitalisation of Reliance Anil Dhirubhai Ambani Group, which is over Rs. 325,000 crore, would surge significantly after the listing of Reliance Power.

“The Indian capital market is near all-time high and there would not have been a better time to create history,” Mr. Ambani said.

The investment bankers, managing the issue, said the demand for the issue would surprise most people.

Reliance Energy, the other listed company of RADAG, would be the parent company for Reliance Power and would hold 45 per cent after the initial public offer.

Elaborating on the sourcing of equipment and talent for the company Mr. Ambani said: “Reliance Power is in partnership with firms for sourcing equipment and there is no dearth or shortage of talent either for project construction or implementation.”

On the cash flow of the company, he said Reliance Power would go cash positive after 2009, when its first project is likely to go on stream.

The Reliance ADAG group said it would create a separate arm to manufacture energy equipment in partnership with global majors in the field.

“We are in talks with the global majors to venture into energy equipment manufacturing which will not only assure us of timely delivery but also ensure quality,” Mr. Ambani said.

The proposed manufacturing facility would neither come under Reliance Power’s fold nor under Reliance Energy, he said, and declined to give details.

Reliance Power, a subsidiary of Reliance Energy, plans to develop 13 projects with a combined generation capacity of 28,200 MW at an investment of $28 billion over the next few years. — PTI

Printer friendly page
Send this article to Friends by E-Mail

Business