Monday, January 14, 2008

India's Largest IPO

Reliance Anil Dhirubhai Ambani Group promoted Reliance Power is all set to launch its Initial Public Offering tomorrow, Jan. 15. The company will aim to raise $2-2.5 billion from the 10-15% offloading. Kotak Mahindra, ICICI Securities, JM Financial and Enam Financial are the advisors to the IPO. Also playing a leading role is foreign investment banking firm UBS.

Reliance Power will be one of the largest IPOs in recent times. The company will need huge funds for its Sasan and Roja projects. Its planned capacity addition is 28,000 MW. The company has fixed a price band of Rs. 405-450 per share at a premium. The face value of each share is Rs. 10, not Rs. 2 as earlier presumed. This is following a SEBI and Supreme Court of India ruling.

CRISIL has rated this IPO 4/5.
Most investors have put SUBSCRIBE on the IPO.

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