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Reliance Power IPO subscribed 10 times in 4 hrs
January 15, 2008 10:20 IST
Last Updated: January 15, 2008 14:41 IST
Anil Ambani group's Reliance [Get Quote] Power IPO on Tuesday generated a demand of close to Rs 1 lakh crore (Rs 1 trillion) within four hours of start of the book building process, with the issue getting oversubscribed nearly 10 times.
According to the latest data available, the IPO got subscribed 9.68 times till 1400 hrs in the first day of its public issue.
It received bids for over 220 crore (2.20 billion) shares as against 22.80 crore (228 million) shares on offer. The issue, which began this morning and would continue till January 18, has already generated demand for shares worth Rs 99,373 crore (Rs 993.73 billion). "It is a reflection of world community in the future of India... Investors seem to be confident in the future of Indian economy," Finance Minister P Chidambaram told PTI on the IPO.
Most of the bids came at Rs 450, the upper end of the price band making it the country's largest-ever IPO with an estimated proceeds of Rs 11,700 crore (Rs 117 billion), bankers close to the IPO said.
"It has created an unprecedented euphoria in the market, The issue would be a good option for retail investors who are looking for short term gains," domestic brokerage firm SMC Global's vice president Rajesh Jain said.
The company is offering the equity shares at a price band of Rs 405-450 per share. The total size of the IPO is of 26 crore (260 million) equity shares, including the promoters contribution of 3.2 crore (32 million) shares. The net issue to the public constitutes 22.8 crore shares.
Reliance Power has a diversified portfolio of 13 medium and large-sized power projects under development and strategically located at various places across India, the company had said in a statement.