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Reliance Power IPO to raise Rs 11,700 cr
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Monday, January 14, 2008 |
 Anil Dhirubhai Ambani Group-promoted Reliance Power's much-awaited Initial Public Offering (IPO) will hit the markets on Tuesday.
Reliance's IPO, known as the country's largest IPO so far, is expected to raise about Rs 11,700 crore, with a net issue of 22.8 crore shares to the public. The total issue size is of 26 crore shares, including the promoters contribution of 3.2 crore shares.
The subscription price for these shares is at the upper end of the price band of Rs 405-450 per share. The issue opens for public subscription on Tuesday and will close on January 18.
For those who want to cash in on the IPO boom but do not want to stay invested or to trade for long, here is the trick, all you need to do is open a demat account, and you can make an assured gain of Rs 10,000.
Huge excitement
The Reliance IPO has created such excitement in the grey market that prelisting deals between retail investors and brokers though illegal means are fetching huge gains. The soaring stock market is taking even those with elementary market knowledge in its surge.
The pre listing deals have already touched unprecedented levels and the grey markert is now ticking with brokers renting out demat accounts for as high as Rs 8,000.
There is no risk for people who do not want to apply are just opening Demat accounts and are letting brokers apply through them, there is no risk. Even if they do get allotment or not, you make Rs 6000 to Rs 10,000," said Sushil Narsanghani, Business Associate, Moneytree Consultant.
Discount to retail investors
Retail investors pay 25 per cent of the issue price for 225 shares as part payment under the scheme for retail investors, which works out to approximately Rs 25,000. A verbal deal is struck with the broker whatever shares are allotted will be transferred to the broker for the issue price in return for anything between Rs 6000-10,000.
This way the investor does not shell out the entire issue price and is guaranteed a return even if no shares are allotted or if the listing takes place at a low price. Brokers who are sure the issue will be hugely oversubscribed are not wary of paying this amount.
"Reliance Power has a diversified portfolio of 13 medium and large sized power projects, under development and strategically located at various places across India. With an installed capacity of 28,200 megawatts, the Reliance Power IPO will significantly contribute to reducing the demand-supply gap for the power in the country at competitive rates," the company said in a statement. (With PTI inputs)
Source : NdtvProfit.com |
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posted by Unknown @ 9:25 AM  |
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SC clears Reliance Power IPO 
