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India's biggest ever share offer, held by Reliance Power to raise nearly $3bn, was oversubscribed over 23 times on day three of the subscription, data showed yesterday. | | Employees enter the Reliance Dhirubhai Ambani Knowledge City in Mumbai, India, yesterday. The initial public offering of Reliance Power was fully subscribed by investors within a minute after it opened on Tuesday, making it India's biggest IPO with estimated proceeds of $3bn. | The initial public offering of Reliance Power owned by Indian tycoon Anil Ambani was fully subscribed within 60 seconds of its opening on Tuesday. "Demand continues to improve across smaller towns," a merchant banker said on condition of anonymity. The Reliance Power IPO saw overall subscription of 23.68 times on the penultimate day of the subscription period, official data at the National Stock Exchange showed at 1230 GMT. Reliance Power is offering 260 million shares or 10.1 percent of its capital amid forecasts that the energy demands of India's fast-growing economy will help to create a booming business. The company aims to raise between Rs105bn and Rs115bn ($2.6bn to $2.9bn) through the share offer. The shares are priced at Rs405 to Rs450, with retail investors set to be given a discount. The firm is a unit of Reliance Energy, which has said the share offer's proceeds will fund the development of power projects. Reliance Power is developing 13 medium and large power projects with a combined planned capacity of 28,200 megawatts.
Source : thepeninsulaqatar.com |
