Reliance Power Limited has recently filed its Draft Red Herring Prospectus (DRHP) with SEBI.
Reliance Power Limited IPO which would be one of the biggest IPO in Indian stock markets which will issue 130 crore equity shares of Rs 2 each at a price to be decided later.
The net issue to the public would be 114 crore equity shares after the promotors contribution of 16 crore equity shares.Reliance Power IPO will constitute 11.5% of the post issue paid-up capital of the company and the net issue will constitute 10.1% of the post issue paid-up capital of the company.
Reliance Power Limited IPO Review:
Company Overiew : Reliance Power Limited is part of the Reliance ADA group and is established to develop, construct and operate power projects domestically and internationally.Reliance Power is currently developing 12 medium and large sized power projects with a combined planned installed capacity of 24,200 MW, one of the largest portfolios of power generation assets under development in India.
Competetive Strengths of Reliance Power Limited
1. One of the largest potfolios of Power Generation Projects under Development in India. 2. Portfolio of Power Projects that diverse in Geographic Location, Fuel-type, Fuel source and off-take. 3. Strategically Located Power Projects. 4. Part of the Reliance ADA Group.
Projects Currently handled by Reliance Power Limited • Rosa Phase I, a 600 MW coal-fired project in Uttar Pradesh scheduled to be commissioned in March 2010. • Rosa Phase II, a 600 MW expansion of Rosa Phase I which is scheduled to be commissioned in September 2010. • Butibori, a 300 MW coal-fired project scheduled to be commissioned in June 2010. • Sasan 3,960MW UMPPs promoted and awarded by the Government of India is expected to be the largest pithead coal-fired power project at a single location in India,scheduled to be commissioned by April 2016. • Shahapur, a 4,000 MW coal-fired(1,200 MW) and combined cycle gas-fired (2,800 MW) project in Shahapur, scheduled to be commissioned in March 2011. • Urthing Sobla (400 MW), a run-of-the-river hydroelectric project, located on the Daulinganga River in Uttarakhand scheduled to be commissioned in March 2014. Five other projects—the gas-fired Dadri project (7,480 MW), the coal-fired MP Power project (3,960 MW) and three run-of-the-river hydroelectric projects, Siyom (1,000 MW), Tato II (700 MW) and Kalai II (1,200 MW).
Major Points of the Reliance Power IPO
Reliance Energy which holds major stake in Reliance Power will offload 11.5% stake from Reliance Power Limited. With regard to the listing the company has got principal approval from the Reliance Energy Shareholders.
Face Value Change : In an recent news, the SEBI has not agreed to the DRHP presented by the Reliance Power for its IPO and so the company has to alter some points to meet the SEBI instructions. As per the market news, SEBI has not agreed on the IPO offer price at Rs. 2 and the company is now considering to change the face value of the shares offered to Rs. 10, for this the Reliance Power IPO issue date may be delayed for at least a month according to the sources.
Reliance Power IPO Date : Subscription of the issue is expected to start around the 2nd week of January 2008.Subscription of the Reliance Power IPO will be high as the Retail and the Institutional investors are showing tremendous confidence in this issue, even before the subscription of the Reliance Power IPO started, Grey market premium is quoting around Rs. 60.
More information related to the Reliance Power IPO will be updated soon.
