Reliance Power Ltd, which raised Rs 11,562 crore in its IPO in January last, has temporarily parked almost the entire money in mutual funds. The 2007-08 financial results declared by the company on Monday show that Rs 11,412.81 crore is invested in mutual funds. The company has not disclosed either the funds or the schemes where the money has been invested.
The IPO offer document says that the company “intends to invest the funds from the issue in interest bearing liquid instruments including deposits with banks and investments in mutual funds. These investments may include investments in mutual funds managed or financial products sold by one of our affiliates, RCL (Reliance Capital)”
The company has spent only Rs 25.83 crore as of March 31, 2008 in construction and development of its various projects.
The temporary parking of the IPO money in mutual funds has helped the company report a net profit of Rs 94.6 crore for 2007-08. Total income for year stands at Rs 132.8 crore, of which dividend income is Rs 112.7 crore.
The company has also informed that from March 31, Coastal Andhra Power Ltd, Reliance Coal Resources Pvt Ltd, Sasan Power Infrastructure Pvt Ltd, Sasan Power Infraventures Pvt Ltd, Maharashtra Energy Generation Infrastructure Ltd and Coastal Andhra Power Infrastructure Ltd have been incorporated as wholly owned subsidiaries.
On the BSE, the scrip was traded at Rs 403.25, an increase of 0.27 per cent over the previous closing of Rs 402.15, reports The Hindu Business Line.
Source: Moneycontrol.com
Showing posts with label Reliance Power IPO. Show all posts
Showing posts with label Reliance Power IPO. Show all posts
Tuesday, April 29, 2008
Tuesday, March 11, 2008
2,261 grievances relating to Rel Power IPO filed
The Securities and Exchange Board of India, or Sebi, has received 2,261 grievances relating to the Reliance Power IPO until March 3, 2008, reports CNBC-TV18.
Grievances relate to non-receipt of refund, credit off-share, and non-receipt of interest on delayed refund. It has conveyed these grievances to Reliance Power for necessary action.
Source: Moneycontrol.com
Grievances relate to non-receipt of refund, credit off-share, and non-receipt of interest on delayed refund. It has conveyed these grievances to Reliance Power for necessary action.
Source: Moneycontrol.com
Monday, February 25, 2008
Reliance Power crosses IPO price of Rs 450
Reliance Power, which made history in Indian capital market by raising more than Rs 11,000 crore from initial public offer in January, crossed its issue price of Rs 450 today as it slipped below issue price since listing day and did not recover.
The stock has touched an intraday high of Rs 451 and an intraday low of Rs 421.40.
At 2:21 pm the share was quoting at Rs 448, up Rs 31.15, or 7.47%, with volumes of 1,23,22,550 shares. On Friday, the share closed down 1.21% or Rs 5.10 at Rs 416.85.
Promoter of Reliance Power, Anil Dhirubhai Ambani has announced bonus in the ratio of 3:5 (three shares for five shares held) yesterday in the conference. Record date will be announced soon. Now the person who got allotment at Rs 430, will get new price of Rs 269 per share. This news has started benefiting the stock in terms of recovery as it crossed Rs 400 mark on February 18 and today touched Rs 450, issue price.
The share had listed, on the BSE, at Rs 547.80 and touched a high of Rs 599.90 on February 11, 2008. But negative sentiment in markets and long gestation period of projects, both these factors impacted the stock on listing day and on subsequent days. It had touched a low of Rs 389 on listng day and 52-week low of Rs 332.50.
Reliance Power had entered capital market with a public issue of 26 crore equity shares of Rs 10 each (22.8 crore shares for public and 3.2 crore shares for promoters) at a price band of Rs 405-450. The company raised Rs 11,700 crore from this issue, which will be used for upcoming power projects.
Source: Moneycontrol.com
The stock has touched an intraday high of Rs 451 and an intraday low of Rs 421.40.
At 2:21 pm the share was quoting at Rs 448, up Rs 31.15, or 7.47%, with volumes of 1,23,22,550 shares. On Friday, the share closed down 1.21% or Rs 5.10 at Rs 416.85.
Promoter of Reliance Power, Anil Dhirubhai Ambani has announced bonus in the ratio of 3:5 (three shares for five shares held) yesterday in the conference. Record date will be announced soon. Now the person who got allotment at Rs 430, will get new price of Rs 269 per share. This news has started benefiting the stock in terms of recovery as it crossed Rs 400 mark on February 18 and today touched Rs 450, issue price.
The share had listed, on the BSE, at Rs 547.80 and touched a high of Rs 599.90 on February 11, 2008. But negative sentiment in markets and long gestation period of projects, both these factors impacted the stock on listing day and on subsequent days. It had touched a low of Rs 389 on listng day and 52-week low of Rs 332.50.
Reliance Power had entered capital market with a public issue of 26 crore equity shares of Rs 10 each (22.8 crore shares for public and 3.2 crore shares for promoters) at a price band of Rs 405-450. The company raised Rs 11,700 crore from this issue, which will be used for upcoming power projects.
Source: Moneycontrol.com
Sunday, February 24, 2008
Reliance Power Ltd sets 3-for-5 bonus share
Reliance Power Ltd on Sunday set a 3-for-5 bonus share issue in an attempt to cheer shareholders after a miserable debut following a record $3 billion initial public offer.
Shareholders other than the founders will receive three bonus shares for every five held, effectively reducing the cost of the shares to Rs 269 for retail shareholders compared to a discounted IPO price of Rs 430.
For institutions, the bonus issue would cut the price to Rs 281 a share compared to an IPO price of 450 rupees.
Chairman Anil Ambani on Sunday said he was also giving up 2.6 percent of his shareholding in Reliance Power to Reliance Energy Ltd, which owns about 45 per cent in Reliance Power, so its ownership structure remains intact.
A proposed IPO for another group company was on track subject to market conditions, he said.
"We've seen very turbulent conditions in the global and Indian capital Markets," he said at a news conference.
"The Reliance Power IPO closed at a time when the market was close to an all-time high. But clearly, since then there has been turbulence in the Markets," he said.
"After considering these adverse changes, we have decided on a bonus issue to protect the interests of long-term investors."
The Reliance Power offer was fully subscribed within a minute of its opening and had attracted bids worth $190 billion from over 4 million investors in January, just days before stock Markets worldwide went into a tailspin.
India's benchmark 30-share BSE index is down 18 per cent from a record high of 21,206.77 hit on Jan. 10.
Shares in Reliance Power dived 17 per cent on their trading debut on Feb. 11.
News that the company would consider bonus shares or other measures had lifted sentiment last week. But at Friday's close they were still more than 7 per cent below the IPO price.
The slump in Reliance Power, a unit of the Anil Dhirubhai Ambani group, had irked investors who complained they were lured to invest by promises from the firm, which has no operating power plants and is unlikely to report strong profits for five years.
The company has reminded investors that there were risks attached to equity investments, and has said its shares were hit by weak market sentiment. It also blamed unidentified rivals.
The turbulent market has recently forced three firms to shelve their IPOs, including a $1.6.
Source: Financial Express
Shareholders other than the founders will receive three bonus shares for every five held, effectively reducing the cost of the shares to Rs 269 for retail shareholders compared to a discounted IPO price of Rs 430.
For institutions, the bonus issue would cut the price to Rs 281 a share compared to an IPO price of 450 rupees.
Chairman Anil Ambani on Sunday said he was also giving up 2.6 percent of his shareholding in Reliance Power to Reliance Energy Ltd, which owns about 45 per cent in Reliance Power, so its ownership structure remains intact.
A proposed IPO for another group company was on track subject to market conditions, he said.
"We've seen very turbulent conditions in the global and Indian capital Markets," he said at a news conference.
"The Reliance Power IPO closed at a time when the market was close to an all-time high. But clearly, since then there has been turbulence in the Markets," he said.
"After considering these adverse changes, we have decided on a bonus issue to protect the interests of long-term investors."
The Reliance Power offer was fully subscribed within a minute of its opening and had attracted bids worth $190 billion from over 4 million investors in January, just days before stock Markets worldwide went into a tailspin.
India's benchmark 30-share BSE index is down 18 per cent from a record high of 21,206.77 hit on Jan. 10.
Shares in Reliance Power dived 17 per cent on their trading debut on Feb. 11.
News that the company would consider bonus shares or other measures had lifted sentiment last week. But at Friday's close they were still more than 7 per cent below the IPO price.
The slump in Reliance Power, a unit of the Anil Dhirubhai Ambani group, had irked investors who complained they were lured to invest by promises from the firm, which has no operating power plants and is unlikely to report strong profits for five years.
The company has reminded investors that there were risks attached to equity investments, and has said its shares were hit by weak market sentiment. It also blamed unidentified rivals.
The turbulent market has recently forced three firms to shelve their IPOs, including a $1.6.
Source: Financial Express
Monday, February 18, 2008
Reliance Power board will consider issuing free bonus shares
In an unprecedented move, Anil Ambani Group company Reliance Powerwill give free bonus shares to all its shareholders to compensate thelosses they suffered when the company was listed a week ago.
"Reliance Power board will consider issuing free bonus shares to allshareholders excluding the promoters," a group spokesperson said.
On the day of its listing at Rs 547.8 a share, Reliance Powerperformed miserably at the stock exchanges and closed the day nearly32 per cent lower.
The IPO had attracted a total demand of about Rs 7,50,000 crore andthe company had issued the shares at Rs 450 while giving a discount Rs20 a share to retail investors.
"Reliance Power board will consider issuing free bonus shares to allshareholders excluding the promoters," a group spokesperson said.
On the day of its listing at Rs 547.8 a share, Reliance Powerperformed miserably at the stock exchanges and closed the day nearly32 per cent lower.
The IPO had attracted a total demand of about Rs 7,50,000 crore andthe company had issued the shares at Rs 450 while giving a discount Rs20 a share to retail investors.
Monday, February 11, 2008
Power ON.....Market OFF
Powerless listing day for Reliance Power
Reliance Power, Anil Dhirubhai Ambani Group Company, has touched a low of Rs 355.30 before closing the day at Rs 372.30, down 17.27% to its issue price of Rs 450 on the NSE. It has opened at Rs 430 and jumped to a high of Rs 530 but immediately drifted below issue price on the back of huge selling pressure in the stock as well as across the market due to weak sentiment. The stock was remained below issue price through the day. It has tried to hold above Rs 400 but could not make it.
The traded turnover for the day was at Rs 5,601 crore and traded volumes were Rs 13,43,61,415 shares on the NSE.
On the BSE, the share opened at Rs 547.80, touched a high/low of Rs 599.90 and Rs 355.05, respectively. Reliance Power closed at Rs 372.50, with volumes of 6,38,82,239 shares.
It has added 48.15 lakh shares in Open Interest. Volumes were relatively low in F&O segment. 400 Put and 450 Call witnessed maximum action.
The company had entered capital market with public issue of 26 crore equity shares of Rs 10 each. Reliance Power IPO was oversubscribed approximately 70 times.
Reliance Power is the flagship company of the Reliance ADA Group to develop, construct and operate power generation projects. The company is currently developing 12 power projects with a combined planned installed capacity of 28,000 MW, one of the largest portfolios of power generation assets under developments
Source: Moneycontrol.com
Reliance Power, Anil Dhirubhai Ambani Group Company, has touched a low of Rs 355.30 before closing the day at Rs 372.30, down 17.27% to its issue price of Rs 450 on the NSE. It has opened at Rs 430 and jumped to a high of Rs 530 but immediately drifted below issue price on the back of huge selling pressure in the stock as well as across the market due to weak sentiment. The stock was remained below issue price through the day. It has tried to hold above Rs 400 but could not make it.
The traded turnover for the day was at Rs 5,601 crore and traded volumes were Rs 13,43,61,415 shares on the NSE.
On the BSE, the share opened at Rs 547.80, touched a high/low of Rs 599.90 and Rs 355.05, respectively. Reliance Power closed at Rs 372.50, with volumes of 6,38,82,239 shares.
It has added 48.15 lakh shares in Open Interest. Volumes were relatively low in F&O segment. 400 Put and 450 Call witnessed maximum action.
The company had entered capital market with public issue of 26 crore equity shares of Rs 10 each. Reliance Power IPO was oversubscribed approximately 70 times.
Reliance Power is the flagship company of the Reliance ADA Group to develop, construct and operate power generation projects. The company is currently developing 12 power projects with a combined planned installed capacity of 28,000 MW, one of the largest portfolios of power generation assets under developments
Source: Moneycontrol.com
Thursday, February 7, 2008
Reliance Power may list with 35-40% premium
Girish Nadkarni, ED- Capital Markets, Avendus Advisors said that for Reliance Power, initially people expected a 100% premium over its issue price but that has come down significantly. Retail investors can get reasonable amount of gains on listing. It may see 35-40% upside over the issue price on listing.
Excerpts of CNBC-TV18’s exclusive interview with Girish Nadkarni:
Q: What do you expect to see from Reliance Power listing next week?
A: I think the pricing that one expected initially which was a 100% premium to the issue has come down significantly but one would expect a reasonable amount of gain for the retail investors who have put in money. 35-40% upside over the issue price is what the market believes it will open at.
Q: How do you think things will shapeup from there because as we know for many of this strong blue chip IPOs, day one might be strong? But how do you expect things will shapeup for a story like Reliance Power from thereon?
A: We have seen all kinds of IPOs in the last two-three years. We have seen companies which have done very badly on listing even listing significantly at a discount to the issue price. But in a quarter over two quarters; we have seen some of the prices rally back based on performance. And some of the large real estate IPOs that came in somewhere in the last year did have some amount of volatility because of a weak opening and then this have rallied on the back of performance.
I would think a real test of a company’s IPO price is the price that one sees in the company after about 12-15 months from the date on which the IPO was launched. That is a true test of whether the IPO was correctly priced or incorrectly priced because market tends to value the future earnings of a company and therefore whether the company fulfil its promise of meeting those earnings in the next 12-15 months or not. The price at the end of that period is a true indicator of the correctness of the pricing of the IPO.
Disclosure: It is safe to assume that my clients & I may have an investment interest in the sectors that have been spoken about.
Source: Moneycontrol.com
Excerpts of CNBC-TV18’s exclusive interview with Girish Nadkarni:
Q: What do you expect to see from Reliance Power listing next week?
A: I think the pricing that one expected initially which was a 100% premium to the issue has come down significantly but one would expect a reasonable amount of gain for the retail investors who have put in money. 35-40% upside over the issue price is what the market believes it will open at.
Q: How do you think things will shapeup from there because as we know for many of this strong blue chip IPOs, day one might be strong? But how do you expect things will shapeup for a story like Reliance Power from thereon?
A: We have seen all kinds of IPOs in the last two-three years. We have seen companies which have done very badly on listing even listing significantly at a discount to the issue price. But in a quarter over two quarters; we have seen some of the prices rally back based on performance. And some of the large real estate IPOs that came in somewhere in the last year did have some amount of volatility because of a weak opening and then this have rallied on the back of performance.
I would think a real test of a company’s IPO price is the price that one sees in the company after about 12-15 months from the date on which the IPO was launched. That is a true test of whether the IPO was correctly priced or incorrectly priced because market tends to value the future earnings of a company and therefore whether the company fulfil its promise of meeting those earnings in the next 12-15 months or not. The price at the end of that period is a true indicator of the correctness of the pricing of the IPO.
Disclosure: It is safe to assume that my clients & I may have an investment interest in the sectors that have been spoken about.
Source: Moneycontrol.com
Tuesday, January 15, 2008
Reliance Power IPO subscribed 4 times at Rs 450/share
Reliance Power IPO has subscribed 4.5 times. All bids are at Rs 450 per share, a higher end of band Rs 405-450.
Source: Moneycontrol.com
Source: Moneycontrol.com
Subscribe to Reliance Power IPO for listing gains
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 is at Rs 405-450 per share.
The IPO will open on January 15 and close on January 18, 2008. Net issue would constitute of 10.1% of post issue paid up capital of the company. Outstanding shares post issue will be of 226 crore equity shares.
Market cap will be Rs 91,530-101,700 crore (USD 23.23-25.8 billion).
The proceeds from the issue will be used for part financing power subsidiaries and for 13 power generation projects. The projects will be developed by 9 subsidiaries. Some funds will be used for general corporate purposes.
Book running lead managers are Kotak Mahindra Capital Company Ltd, UBS Securities India Pvt Ltd, ABN Amro Securities (I) Pvt Ltd, Deutsche Equities India Pvt Ltd, Enam Securities Pvt Ltd, ICICI Securities Ltd, JM Financial Consultants Pvt Ltd and JP Morgan India Pvt Ltd and Karvy Computershare Pvt Ltd is the registrar to the issue.
Source: Moneycontrol.com
The IPO will open on January 15 and close on January 18, 2008. Net issue would constitute of 10.1% of post issue paid up capital of the company. Outstanding shares post issue will be of 226 crore equity shares.
Market cap will be Rs 91,530-101,700 crore (USD 23.23-25.8 billion).
The proceeds from the issue will be used for part financing power subsidiaries and for 13 power generation projects. The projects will be developed by 9 subsidiaries. Some funds will be used for general corporate purposes.
Book running lead managers are Kotak Mahindra Capital Company Ltd, UBS Securities India Pvt Ltd, ABN Amro Securities (I) Pvt Ltd, Deutsche Equities India Pvt Ltd, Enam Securities Pvt Ltd, ICICI Securities Ltd, JM Financial Consultants Pvt Ltd and JP Morgan India Pvt Ltd and Karvy Computershare Pvt Ltd is the registrar 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
Thursday, January 3, 2008
Rel Power IPO opens on Jan 15, to raise Rs 10500-11500 Cr
Reliance Power today filed the red herring prospectus (RHP) with the Registrar of Companies, Maharshtra, Mumbai (ROC), for its proposed initial public offering (IPO).
Reliance Power has fixed the price band for the IPO at Rs 405 - 450 per share.
To enable large participation by retail investors, Reliance Power will offer a discount of Rs 20 per share to the retail investors, i.e. approximately 5% of the issue price.
Reliance Power has also fixed convenient payment terms for all categories of investors. While QIBs are required to pay 10% on the application, the HNIs and retail investors will have the option to pay Rs 115 on the application, i.e. only approximately 25% of the issue price. The balance amount will be payable on allotment.
The IPO is scheduled to open on January 15, 2008 and will close on January 18, 2008.
Reliance Power, through this IPO proposes to raise approximately Rs 10,500 - 11,500 crores - the largest IPO in the history of the Indian capital markets. Reliance Power proposes to issue 26 crore equity shares of Rs 10 each including a promoters’ contribution of 3.2 crore Equity Shares which shall be allotted at the IPO price to the Promoters. The balance 22.8 crore equity shares would constitute the net issue to the public. The issue will constitute 11.5% and the net issue will constitute 10.1% of the post-Issue paid-up equity capital of Reliance Power.
Reliance Power is part of the Reliance Anil Dhirubhai Ambani group and is currently engaged in the construction and development of various gas and coal based thermal power projects and hydro power projects in various parts of the country, of over 28,000 MW capacity - the largest development pipeline in the country.
The issue proceeds are proposed to be utilized for funding subsidiaries to part-finance the construction and development costs of the various projects under development and for general corporate purposes.
The equity shares of the company are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.
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
Reliance Power has fixed the price band for the IPO at Rs 405 - 450 per share.
To enable large participation by retail investors, Reliance Power will offer a discount of Rs 20 per share to the retail investors, i.e. approximately 5% of the issue price.
Reliance Power has also fixed convenient payment terms for all categories of investors. While QIBs are required to pay 10% on the application, the HNIs and retail investors will have the option to pay Rs 115 on the application, i.e. only approximately 25% of the issue price. The balance amount will be payable on allotment.
The IPO is scheduled to open on January 15, 2008 and will close on January 18, 2008.
Reliance Power, through this IPO proposes to raise approximately Rs 10,500 - 11,500 crores - the largest IPO in the history of the Indian capital markets. Reliance Power proposes to issue 26 crore equity shares of Rs 10 each including a promoters’ contribution of 3.2 crore Equity Shares which shall be allotted at the IPO price to the Promoters. The balance 22.8 crore equity shares would constitute the net issue to the public. The issue will constitute 11.5% and the net issue will constitute 10.1% of the post-Issue paid-up equity capital of Reliance Power.
Reliance Power is part of the Reliance Anil Dhirubhai Ambani group and is currently engaged in the construction and development of various gas and coal based thermal power projects and hydro power projects in various parts of the country, of over 28,000 MW capacity - the largest development pipeline in the country.
The issue proceeds are proposed to be utilized for funding subsidiaries to part-finance the construction and development costs of the various projects under development and for general corporate purposes.
The equity shares of the company are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.
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 2, 2008
Rel Power IPO gets final Sebi nod, to open Jan 15-18
Reliance Power IPO has obtained the final Sebi nod and will open between January 15-18, reports CNBC-TV18. Reliance Power will raise Rs 10,500- 11,500 crore via IPO. Reliance Power offers staggered payment option to retail investors.
Source: Moneycontrol.com
Source: Moneycontrol.com
Monday, December 31, 2007
CRISIL assigns grade 4/5 to Reliance Power IPO
CRISIL has come out with research report on Reliance Power IPO. The firm has assigned a CRISIL IPO Grade '4/5' to the proposed initial public offer of Reliance Power (RPower), in a report dated December 31, 2007.
The company proposed public issue of 260 million equity shares of face value Rs 10 targeted at an issue size in the range of INR 105 to 115 billion.
CRISIL research report on Reliance Power IPO
CRISIL has assigned a CRISIL IPO Grade '4/5' to the proposed initial public offer of Reliance Power (RPower). This grade indicates that the fundamentals of the issue are above average, in relation to other listed equity securities in India.
The grading assigned reflects CRISIL's view that strong demand for power in India will catalyse regulatory facilitation for private participation in the power sector over the medium to long term. In this scenario, early movers like RPower will benefit from attractive business opportunities that are likely to come about as a result, especially if they achieve high levels of financial capability, as is likely for RPower after its proposed IPO.
The grading also reflects the Reliance Anil Dhirubhai Ambani Group's commitment that RPower will be the sole repository of the Group's economic interest in the power generation segment. The grading is tempered by the fact that RPower is planning to put up capacity, on a scale and within a time frame, never achieved in India before and therefore it is likely to face significant implementation challenges.
The grading also reflects the fact that power generators in India will have to depend on SEBs for off take over the short-to-medium term and that their return will be subject to the regulatory oversight in case of Two-part tariff based Projects such as Rosa I (600 MW) and Rosa II (300 MW). Also, returns on the projects won through the competitive bidding route may not be substantially higher due to competition.
About the company
Reliance Power is a part of the Reliance ADA Group and has been established with the objective to develop, construct and operate power projects both domestically and internationally.
RPower does not have any power plant in operation as of now. The company proposes to install 28,200 Mega watt (MW) generation capacity over the next 8 years. Of the total proposed capacity, six projects totalling 7060-MW (Butibori, Shahapur coal, Sasan, Rosa-I &II and Urthing Sobla) are in various stages of implementation. Commercial operations of the first unit of proposed project, Rosa-I (2*300 MW), is expected by December 2009. All the six identified projects would be executed through wholly-owned subsidiaries of RPower, except Urthing Sobla and Butibori, where RPower would hold 80 percent stake and 74 percent stake, respectively.
Besides, the aforementioned identified projects which are in advanced stages of implementation, RPower also proposes to set up seven more generation projects, which are in developmental stage. These include the gas-fired Dadri (7,480 MW) and Shahapur gas project (2,800 MW); the coal-fired MP Power project (3,960 MW) and Krishnapatnam (4,000 MW); three run-of-the-river hydroelectric projects, Siyom (1,000 MW), Tato II (700 MW) and Kalai II (1,200 MW).
Source: Moneycontrol.com
The company proposed public issue of 260 million equity shares of face value Rs 10 targeted at an issue size in the range of INR 105 to 115 billion.
CRISIL research report on Reliance Power IPO
CRISIL has assigned a CRISIL IPO Grade '4/5' to the proposed initial public offer of Reliance Power (RPower). This grade indicates that the fundamentals of the issue are above average, in relation to other listed equity securities in India.
The grading assigned reflects CRISIL's view that strong demand for power in India will catalyse regulatory facilitation for private participation in the power sector over the medium to long term. In this scenario, early movers like RPower will benefit from attractive business opportunities that are likely to come about as a result, especially if they achieve high levels of financial capability, as is likely for RPower after its proposed IPO.
The grading also reflects the Reliance Anil Dhirubhai Ambani Group's commitment that RPower will be the sole repository of the Group's economic interest in the power generation segment. The grading is tempered by the fact that RPower is planning to put up capacity, on a scale and within a time frame, never achieved in India before and therefore it is likely to face significant implementation challenges.
The grading also reflects the fact that power generators in India will have to depend on SEBs for off take over the short-to-medium term and that their return will be subject to the regulatory oversight in case of Two-part tariff based Projects such as Rosa I (600 MW) and Rosa II (300 MW). Also, returns on the projects won through the competitive bidding route may not be substantially higher due to competition.
About the company
Reliance Power is a part of the Reliance ADA Group and has been established with the objective to develop, construct and operate power projects both domestically and internationally.
RPower does not have any power plant in operation as of now. The company proposes to install 28,200 Mega watt (MW) generation capacity over the next 8 years. Of the total proposed capacity, six projects totalling 7060-MW (Butibori, Shahapur coal, Sasan, Rosa-I &II and Urthing Sobla) are in various stages of implementation. Commercial operations of the first unit of proposed project, Rosa-I (2*300 MW), is expected by December 2009. All the six identified projects would be executed through wholly-owned subsidiaries of RPower, except Urthing Sobla and Butibori, where RPower would hold 80 percent stake and 74 percent stake, respectively.
Besides, the aforementioned identified projects which are in advanced stages of implementation, RPower also proposes to set up seven more generation projects, which are in developmental stage. These include the gas-fired Dadri (7,480 MW) and Shahapur gas project (2,800 MW); the coal-fired MP Power project (3,960 MW) and Krishnapatnam (4,000 MW); three run-of-the-river hydroelectric projects, Siyom (1,000 MW), Tato II (700 MW) and Kalai II (1,200 MW).
Source: Moneycontrol.com
Sunday, December 30, 2007
SEBI approves Reliance Power's IPO
Anil Ambani group on Friday got the regulatory go-ahead from SEBI for the public issue of Reliance Power Ltd, the group's first IPO and estimated to raise about $3 billion, the highest ever proceeds in India.
Securities and Exchange Board of India has issued its observations on the draft prospectus of RPL, while clearing the way for IPO, sources close to the development said.
The public offer by the ADAG firm Reliance Energy's subsidiary is expected to be launched early next year and could raise over three billion dollars, eclipsing the public issue of realty giant DLF, which had raised more than two billion dollars and is the biggest ever IPO so far.
The go-ahead comes a day after SEBI disposed off a complaint against the IPO, while saying that "the entire promoter quota, that is, 20 per cent of the capital in RPL shall be locked in for a period of five years from the date of allotment in the proposed IPO."
SEBI on Thursday put a rider of five-year lock-in period on promoters' equity while disposing off a complaint against the proposed initial public offer of Anil Ambani group company Reliance Power Ltd.
Listing out the eligibility criteria for computation of promoters' contribution, SEBI said: "The entire promoter quota, that is, 20 per cent of the capital in RPL shall be locked in for a period of five years from the date of allotment in the proposed IPO."
A two-member bench comprising members T C Nair and V K Chopra, accordingly disposed off the case that it was hearing following an order by Mumbai High Court on a PIL.
When contacted, an ADAG spokesperson declined to comment. While SEBI wanted full disclosure by promoters and the lead managers as per the various statutes and guidelines to protect the interest of investors, it did not take up the issue of 'short charging of shareholders' due to transfer of projects from ADAG group company Reliance Energy Ltd to RPL.
The company is estimated to raise up to three billion dollars through the proposed public offer.
Securities and Exchange Board of India has issued its observations on the draft prospectus of RPL, while clearing the way for IPO, sources close to the development said.
The public offer by the ADAG firm Reliance Energy's subsidiary is expected to be launched early next year and could raise over three billion dollars, eclipsing the public issue of realty giant DLF, which had raised more than two billion dollars and is the biggest ever IPO so far.
The go-ahead comes a day after SEBI disposed off a complaint against the IPO, while saying that "the entire promoter quota, that is, 20 per cent of the capital in RPL shall be locked in for a period of five years from the date of allotment in the proposed IPO."
SEBI on Thursday put a rider of five-year lock-in period on promoters' equity while disposing off a complaint against the proposed initial public offer of Anil Ambani group company Reliance Power Ltd.
Listing out the eligibility criteria for computation of promoters' contribution, SEBI said: "The entire promoter quota, that is, 20 per cent of the capital in RPL shall be locked in for a period of five years from the date of allotment in the proposed IPO."
A two-member bench comprising members T C Nair and V K Chopra, accordingly disposed off the case that it was hearing following an order by Mumbai High Court on a PIL.
When contacted, an ADAG spokesperson declined to comment. While SEBI wanted full disclosure by promoters and the lead managers as per the various statutes and guidelines to protect the interest of investors, it did not take up the issue of 'short charging of shareholders' due to transfer of projects from ADAG group company Reliance Energy Ltd to RPL.
The company is estimated to raise up to three billion dollars through the proposed public offer.
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