Reliance Power IPO has subscribed 10.52 times. Maximum bids are at Rs 450 per share, a higher end of band Rs 405-450. Public issue received bids for 2.4 billion shares as against 26 crore shares on offer and that bids worth of USD 27.5 billion (Rs 1.08 lakh crore).
Qualified institutional investors' reserved portion subscribed 17.5 times.
The initial public offer of Reliance Power, ADAG group company, has opened for subscription today. The company is offering 26 crore equity shares through this issue in the price band of Rs 405-450 per share and raising nearly Rs 10530-11700 crore (USD 2.67- 2.97 billion).
Net issue to the public is of 22.8 crore shares and will raise between Rs 9234 – 10260 crore from the public. Promoters have pumped in Rs 1440 crore yesterday at Rs 450 per share as against 3.2 crore shares.
The issue will close for subscription on January 18, 2008. Net issue would constitute 10.1% of post issue paid up capital of the company. Shares outstanding post issue would be 226 crore shares. Market cap of the company would be Rs 91530–Rs 101700 crore (USD 23.23 – 25.8 billion).
Power generation company has 13 projects, out of which 6 are under development now.
* 7 coal based projects - 14,620 MW
* 2 gas bsed - 10,280 MW from KG basin
* 4 Hydroelectric projects – 3300 MW
Company intends to use IPO money for part financing power subsidiaries, which are pursuing 13 power generation projects. Out of which, 11 projects are to developed by nine subsidiaries; one is being directly executed by Reliance Power and one project under subsidiary is yet to be transferred. Rest of the money will be used for general corporate purposes and to get benefit of listing.
Source: Moneycontrol.com
Showing posts with label RPL IPO. Show all posts
Showing posts with label RPL IPO. Show all posts
Tuesday, January 15, 2008
Reliance Power IPO opens for subscription
Reliance Power, a Anil Dhirubhai Ambani Group Company, is open for subscription with an initial public offer (IPO) of 26 crore equity shares. The issue will close on January 18. The price band is between Rs 405-450 per share.
The Reliance Power IPO, the country’s largest IPO so far, is expected to raise an amount in the range of Rs 10,700 crore-11,700 crore, with a net issue to the public of 228 million shares. The total issue size is of 260 million shares, including the promoters’ contribution of 32 million shares.
* The IPO opens today
* Rs 20 discount for retail investors
* Retail investors have option to pay only Rs 115 per share on application
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.
With a combined planned installed capacity of 28,200 MW, Reliance Power has one of the largest portfolios of power generation assets under development in India
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 J.P. 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.
Source: Moneycontrol.com
The Reliance Power IPO, the country’s largest IPO so far, is expected to raise an amount in the range of Rs 10,700 crore-11,700 crore, with a net issue to the public of 228 million shares. The total issue size is of 260 million shares, including the promoters’ contribution of 32 million shares.
* The IPO opens today
* Rs 20 discount for retail investors
* Retail investors have option to pay only Rs 115 per share on application
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.
With a combined planned installed capacity of 28,200 MW, Reliance Power has one of the largest portfolios of power generation assets under development in India
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 J.P. 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.
Source: Moneycontrol.com
Wednesday, January 9, 2008
Subscribe to Reliance Power IPO
Hem Securities has come out with report on Reliance Power IPO. It has recommended subscribing the issue.
Reliance Power is planning to raise around Rs 10,530-11,700 crore from its initial public offering (IPO) of 26 crore equity shares with a face value of Rs 10, for cash, a price decided through 100% book building process. The price band has been fixed at Rs 405-450 per share.
Hem Securities report on Reliance Power IPO
Business Profile
Reliance Power (RPower), originally incorporated as Bawana Power Private Limited, is part of the Reliance Anil Dhirubhai Ambani Group and is currently developing 13 medium and large sized power projects with a combined planned installed capacity of 28,200 MW. The identified project sites are located in western India (12,220 MW), northern India (9,080 MW), northeastern India (2,900 MW) and southern India (4,000 MW).
The projects include seven coal-fired projects (14,620 MW) to be fuelled by reserves from captive mines and supplies from India and abroad, two gas-fired projects (10,280 MW) to be fueled primarily by reserves from the Krishna Godavari Basin (the “KG Basin”) off the east coast of India, and four hydroelectric projects (3,300 MW), three of them in Arunachal Pradesh and one in Uttarakhand.
Company intends to sell the power generated by these projects under a combination of long-term and short-term PPAs to state-owned and private distribution companies and industrial consumers. In addition to the 28,200 MW of power projects, company intends to develop additional power projects to help meet the huge demand in this sector. Company is considering the development of CBM (Coal Bed Methane) power generation projects based on fuel from CBM blocks being explored by a consortium that includes company’s affiliates.
Company also intends to invest in overseas opportunities that are a strategic fit with company’s business. Company intends to explore the possibility of registering certain of its projects with the Clean Development Mechanism executive board for the issuance of carbon emission reduction certificates that company may sell. The company has subsidiaries viz SPL, CAPL, MPPGL, RPSCL, MEGL, VIPL, USHPPL, THPPL, SHPPL and KPPL. Projects of an aggregate generation capacity of 24,600 MW were bid and secured by the Company in its own name. Of this Dadri Project of 7,480 MW is being developed by the Company and the Projects of 17,120 MW are being developed through subsidiaries.
Valuation
The company is the primary vehicle for investments in the power generation in Reliance ADA group. The company has entered and intended to enter into various arrangements with companies of Reliance ADA group, including REL, RNRL and Reliance Energy Transmission. This will help the company in drawing upon the considerable expertise and resources these affiliates have in the energy sector.
As the company is in project implementation phase hence meaningful earnings likely to kick in later years. After commissioning of these proposed projects over next few years the company would be among one of the major power producing company in India. The company enjoys the lower risk due to its well diversified project portfolio comprising of coal , gas and hydro.
The company with its strategies like lower cost of generation, fast completion of projects and efficient operations looks an attractive issue to deploy the funds. Investor can “Subscribe” the issue.
Source: Moneycontrol.com
Reliance Power is planning to raise around Rs 10,530-11,700 crore from its initial public offering (IPO) of 26 crore equity shares with a face value of Rs 10, for cash, a price decided through 100% book building process. The price band has been fixed at Rs 405-450 per share.
Hem Securities report on Reliance Power IPO
Business Profile
Reliance Power (RPower), originally incorporated as Bawana Power Private Limited, is part of the Reliance Anil Dhirubhai Ambani Group and is currently developing 13 medium and large sized power projects with a combined planned installed capacity of 28,200 MW. The identified project sites are located in western India (12,220 MW), northern India (9,080 MW), northeastern India (2,900 MW) and southern India (4,000 MW).
The projects include seven coal-fired projects (14,620 MW) to be fuelled by reserves from captive mines and supplies from India and abroad, two gas-fired projects (10,280 MW) to be fueled primarily by reserves from the Krishna Godavari Basin (the “KG Basin”) off the east coast of India, and four hydroelectric projects (3,300 MW), three of them in Arunachal Pradesh and one in Uttarakhand.
Company intends to sell the power generated by these projects under a combination of long-term and short-term PPAs to state-owned and private distribution companies and industrial consumers. In addition to the 28,200 MW of power projects, company intends to develop additional power projects to help meet the huge demand in this sector. Company is considering the development of CBM (Coal Bed Methane) power generation projects based on fuel from CBM blocks being explored by a consortium that includes company’s affiliates.
Company also intends to invest in overseas opportunities that are a strategic fit with company’s business. Company intends to explore the possibility of registering certain of its projects with the Clean Development Mechanism executive board for the issuance of carbon emission reduction certificates that company may sell. The company has subsidiaries viz SPL, CAPL, MPPGL, RPSCL, MEGL, VIPL, USHPPL, THPPL, SHPPL and KPPL. Projects of an aggregate generation capacity of 24,600 MW were bid and secured by the Company in its own name. Of this Dadri Project of 7,480 MW is being developed by the Company and the Projects of 17,120 MW are being developed through subsidiaries.
Valuation
The company is the primary vehicle for investments in the power generation in Reliance ADA group. The company has entered and intended to enter into various arrangements with companies of Reliance ADA group, including REL, RNRL and Reliance Energy Transmission. This will help the company in drawing upon the considerable expertise and resources these affiliates have in the energy sector.
As the company is in project implementation phase hence meaningful earnings likely to kick in later years. After commissioning of these proposed projects over next few years the company would be among one of the major power producing company in India. The company enjoys the lower risk due to its well diversified project portfolio comprising of coal , gas and hydro.
The company with its strategies like lower cost of generation, fast completion of projects and efficient operations looks an attractive issue to deploy the funds. Investor can “Subscribe” the issue.
Source: Moneycontrol.com
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