Reliance Power IPO shows biggest share offer, oversubscribed 73 times
RELIANCE POWER EXTENDS ITS EMPIRE
Reliance Power Theory: I Win, You Lose
Reliance vs Vedanta
Yet another history, just associated with the name Reliance, was created in Indian capital market on Friday. India's biggest Initial Public Offer (IPO), offered by Reliance Power, was reportedly oversubscribed more than 73 times and became the biggest-ever share offer in the country.
According to a data given by the National Stock Exchange web site, retail investors scrambled to apply for the Reliance Power IPO by floating about three-billion-dollar in Indian capital market.
The final figures will be come out on Saturday evening. Some of the bankers have said that public response for the Reliance Power IPO was the largest-ever till date in financial market in the country as the investors have submitted bids worth 7.52 trillion rupees ($191 billion) for Reliance Power IPO.
It was three times more than the previous record of 2.04 trillion rupees ($51.96 billion) bid that was offered by Mundra Port, country’s largest private sector port, in November 2007.
Anil Ambani, chairman of ADAG that owned Reliance Power, offered 260 million shares (10.1 percent of its capital), and expressed hope that the energy demands increasing in India would create power sector a booming business in coming days. Reliance IPO has created another history by receiving 4.7 million applications. Earlier, the record applications (1.95 million) had received by Mukesh Ambani’s Reliance Petroleum IPO in 2006.
Everybody is surprised on the amazing response received by Reliance Power. However, some of the market experts have also said that many of the applicants who would receive the IPO in their names would think to sell the shares on the day of listing just to gain a short-term profit. Who say whatever one thing is very much clear that the overwhelming response shown by the people indicates faith they have in the Ambani’s name.
The IPO was fully subscribed within 60 seconds just after the opening on Tuesday. The company has decided to price the share at Rs 405 to Rs 450 and the retail investors will be given Rs 20 discount per share.
