The government said Anil Ambani-promoted Reliance Power IPO did not appear to be overpriced, if the over-subscription to the public issue is taken into consideration. Reliance Power, which raised close to $ 3 billion through an initial public offer earlier this year, was oversubscribed by about 73 times. However, despite an impressive response to the IPO, the stock made a disastrous debut on bourses and dipped below the issue price on the first day itself.
"It is a reflection of world community in the future of India... Investors seem to be confident in the future of Indian economy," Chidambaram told PTI on IPO that hit the market this morning for mopping upto Rs 11,700 crore (Rs 117 billion). Not only the IPO was fully subscribed within a minute of opening, it generated demand worth over Rs 50,000 crore (Rs 500 billion) in less than two hours.
The trading has come to a halt on speculations that the company's IPO is unlikely to hit the market by the second week of December.
Further the shareholders have accorded their approval for issue of bonus shares in 3:5 ratio, wherein three new equity shares would be alloted for every five existing equity shares held, the company added. The company had recommended the issue of 13.68 crore (Rs 136.8 million) bonus shares in the ratio of three new equity shares of Rs 10 each for every five existing equity shares of Rs 10 held by the shareholders of the company in the public category.
The company had raised a similar amount of debt in FY 09 as well. Reliance Power has bagged three of four contracts for developing UMPPs in the country.
In the revised financial bids, Anil Ambani-controlled Reliance Power had emerged as the lowest tariff bidder last month vis--vis other power majors such as Lanco Infratech and National Thermal Power Corporation. Official sources said the government might go for re-bidding to bring down the quoted tariff, which is observed to be on the higher side. The ETF will meet on July 19 to take a final view.
When contacted, REL Investors Forum Secretary 'Veekay', whose name was mentioned on the release along with two other persons -- Prakash Krishnan and Anil Upadhyaya -- told PTI that the forum members include 60-70 shareholders of REL. Investors in REL are feeling cheated with ADA group company RPL's proposed public issue, it noted.
In a mega Rs 50,000-crore deal, the Anil Ambani group on Sunday announced merger of RNRL with another group firm Reliance Power, which would now become a direct beneficiary of the gas deal signed with Mukesh Ambani-led Reliance Industries.
The Brihanmumbai Electric Supply and Transport Undertaking demanded on Thursday that the Maharashtra Electricity Regulatory Commission revoke the licence of Reliance Energy (REL) and give BEST the right to supply power to Mumbai suburbs. At present, REL caters to the suburban areas and BEST a major part of the city. In fact, MERC had asked both BEST and REL to sign power purchase agreements with TPC.
The country's biggest IPO will close on January 18.
Reliance Energy Ltd said on Friday the Appellate Tribunal for Electricity has quashed an order of Maharashtra Electricity Regulatory Commission that restricted the company from offering rebates to its retail consumers in the city.
Reliance Energy Ltd and Tata Power Company are eyeing an equity stake in an Indonesian coal firm -- Bumi Resources -- to meet fuel requirements for their power plants in India.
ADA Group's Reliance Energy and GMR Infrastructure are the two Indian firms that have been shortlisted in the bidding process to acquire Singapore's Tuas Power, one of the three power firms put on block.
Reliance Energy Limited has signed a Memorandum of Understanding with the Maharashtra Industrial Development Corporation to set up two group captive power plants at Butibori in Nagpur and Thane-Belapur belt near Mumbai.
Power Finance Corporation, the nodal agency for ultra mega power projects, has extended the last date for accepting bids for Krishnapatnam project to October 24, sources said. Essar Power, Sterlite Industries, Larsen and Toubro, D S Construction, Japan's Sumitomo Corp and CLP-GMR combine are other companies believed to be in the qualified bidders list.
Anil Dhirubhai Ambani Group (ADAG) company, the Rs 6,576-crore Reliance Energy (REL) on Wednesday announced that it would buy back its shares through open market purchases at a maximum price of Rs 1,600 per share.
The Bombay high court on Tuesday imposed a fine of Rs 1 lakh on Anil Ambani's Reliance Energy Limited for constructing a power substation in suburban Chembur without permission from the civic authorities. Division bench of Justices J N Patel and Amjed Sayed also dismissed REL's petition challenging demolition notice issued by Municial Corporation of Greater Mumbai.
The Appellate Tribunal for Electricity has set aside an order of Maharashtra Electricity Regulatory Commission against Reliance Energy Ltd on a dispute related to billing complaints by its customers in Mumbai.
Reliance Energy Ltd plans to invest Rs 60,000 crore (Rs 600 billion) over the next five years to add 15,000 MW of power generation capacity, company chairman Anil Ambani said in Mumbai on Tuesday.
Reliance Energy Ltd on Thursday launched electricity bills in Braille for its visually impaired customers and announced a project to promote Braille literacy among the blind in Mumbai.
The financial bids will be opened on Wednesday along with the technical bids for Bareilly. Torrent had quoted highest rates at Rs 2.17 per unit, followed by JUSCO at Rs 2.16 per unit for Kanpur.
Corporate leaders like Reliance Energy and Tata group have evinced interest in Punjab government's proposed three power plants of 5,000 mw - a move that will make the state power surplus within three and half years.
Reliance Energy Limited has outbid seven other companies, including Tata Power and GMR, to emerge as the top contender for building India's first fully independent private power transmission lines.
Reliance Energy plans to build two new power plants in Maharashtra, near the coastal town of Shahpur in Ratnagiri.
Private sector giants Reliance Energy, Torrent Power, Jaiprakash Group and L&T are among the companies that have bid for setting up hydro power plants in Himachal Pradesh.\n\n
The move will help the utility to charge more from its 2.6 million users in Mumbai. Reliance Infrastructure (Rel Infra) had asked asked the Maharashtra Electricity Regulatory Commission for a 4.19 per cent rise in its annual revenue requirement. It was instead granted an increase of 10 per cent. Mumbai and its suburbs are serviced by Tata Power, Brihanmumbai Electricity & Suburban Transport and Reliance Energy.
To meet fuel supply commitments to the power sector, the government today said CIL might divert a portion of the coal meant for e-auction to power plants.
Reliance Energy Ltd (REL,) that supplies power to the suburbs of Mumbai and New Mumbai, has spent Rs 30 crore (Rs 300 million) to ensure better power supply restoration system this year.
Power will become dearer to subscribers of Reliance Energy Ltd by 19 per cent on an average for the period between April 24, 2007, and March 31, 2008, after the new tariff order was released by the Maharashtra Electricity Regulatory Commission.
Sasan Power Ltd, the special purpose vehicle floated by Power Finance Corporation for the 4,000 MW project, will on Wednesday issue the Letter of Intent to Reliance Power Ltd.
Besides seeking vacation of the apex court's interim order, which stayed the electricity tribunal's judgement on May 14, Reliance also sought a direction to Maharashtra Electricity Regulatory Commission to allocate TPC's generating capacity as was done for financial years 2006-07 and 2007-08.
Unable to kickstart its maiden transmission project even two years after winning the bid, Reliance Energy Ltd has now sought government intervention to ensure that state-run Power Grid Corporation of India Ltd signs the joint venture agreement.
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