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Reliance Power files IPO papers

business Updated: Oct 03, 2007 23:00 IST
Arun Kumar

Reliance Power, a company promoted by Reliance Energy and the Anil Dhirubhai Ambani Group, has filed its draft red herring prospectus with the Securities and Exchange Board of India to raise over Rs 12,500 crore through a book-built initial public offer.

Since the issue size is 11.5 per cent of Reliance Power's expanded equity, it will result in a market capitalization of over Rs 1,00,000 crore for the company post listing. This will be the second company after Reliance Communications in the Anil Ambani stable to have a market capitalisation of over Rs 1,00,000 crore.

The company plans to issue 1.3 billion equity shares of Rs 2 each at a price to be decided through book building. This includes 160 million shares to the promoters at the offer price. The net offer to the public will be 10.5 per cent of the company's expanded equity capital.

Reliance Power is engaged in the construction and development of various gas- and coal-based thermal power projects and hydroelectric power projects in various parts of the country. The issue proceeds will be used to funds these. The IPO by Reliance Power, which recently bagged the 4,000 MW Sasan power project, is part of the revenue mobilisation exercise for its estimated Rs 1,00,000 crore investment plans.

The issue is expected to be the largest public offering. Kotak Mahindra, UBS Securities, ABN Amro Securities, Deutsche Equities India, Enam Securties, JM Financial, ICICI Securities and JP Morgan India are the book running lead managers to the issue.