Reliance Power IPO: Reliance Power Ltd IPO will be world`s 4th largest this year
October 8, 2007
India’s Reliance Power Ltd will offer 1.3 billion shares in an upcoming IPO.
The company, a subsidiary of Reliance Energy, filed draft IPO papers on Wednesday. The issue will constitute an 11.5 percent share of the company’s equity capital. Analysts estimate the amount Reliance is seeking to raise in the IPO to be between US$2 billion and $3 billion, among the largest ever in India.
“We intend to fund an aggregate amount of Rs 6,148.31 crore from the net proceeds in our subsidiaries to partially finance the development of (six) identified projects. The same shall be funded either by way of share capital or shareholder loan or a combination of the two,” the company said in its draft prospectus filed by it before market regulator SEBI for its IPO.
Reliance Power IPO subscription date, allotment status, listing price and listing date will be announced later.
Posted in IPO
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October 18th, 2007 at 2:25 pm
what should be a 1 share prize?
November 10th, 2008 at 10:47 am
After researching this a bit, I found some info. Quote: Dhirubhai Anil Ambani Group, which controls Reliance Energy, has said the IPO entails a sale of a 10.1 percent stake and media reports earlier said that could raise up to $2.8 billion.
The group, which also has interests in telecoms, financial services, infrastructure and entertainment, has said it planned to offer up to 30 percent of the shares to retail clients, with a further 10 percent going to wealthy individuals. Unquote
Why does the wealthy people always get a cut of the pie?