Rel Power goes all out to woo retail investors
The Anil Dhirubhai Ambani Group is working overtime at making the Reliance Power issue attractive for the retail investors, reports Suman Layak.india Updated: Jan 03, 2008 01:05 IST
The Anil Dhirubhai Ambani Group is working overtime at making the Reliance Power issue attractive for the retail investors. Apart from a five per cent discount, the retail investor will also have the option of paying for the shares in two instalments, sources said.
The public issue, the first from the Anil Ambani camp since the split between the Ambani brothers Mukesh and Anil, is likely to be the highest ever issue of equity shares in India. The issue has already faced complaints by one investor association. The company had originally planned to issue shares with a face value of Rs 2 but is now going to issue shares with a face value of Rs 10 with a premium of around Rs 400.
In November, the company withdrew its application for splitting its shares.
Sources said that the company has planned to seek 25 per cent of bid price at the time of application and then the remaining on allotment. Sources indicated that the company has filed the Red Herring Prospectus on Wednesday with the Securities and Exchange’s Board of India.
The IPO of Reliance Power, which is a joint venture between Reliance Energy and Anil Ambani-Group company AAA Projects, is proposed to be opened on January 15 and close on January 18.
The total amount likely to be raised is around Rs 12,000 crore. Around 30 per cent of the issue is likely to be reserved for the retail investors. The price band of the issue is likely to be around Rs 400-450. The company spokesperson refused to offer a comment at this stage.
According to sources the Anil Ambani group of companies already have around seven million shareholders. By trying to make the issue attractive for the retail investors the group is likely to attract more retail shareholders to it.