Anil Ambani group's Reliance [Get Quote] Power IPO on Tuesday generated a demand of over Rs 78,975 crore (Rs 789.75 billion) within one hour of its book building process, that started on Tuesday morning.
According to the latest data available on the National Stock Exchange, the IPO got subscribed over 6.75 times till 11 a.m. in the first day of its public issue.
The issue received bids for over 153.86 crore (1.538 billion) shares as against 22.80 crore (228 million) shares on offer.
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 good option for retail investors who are looking for short term gain," 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 book building process which commenced today would close on January 18.
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.
With an installed capacity of 28,200 megawatts, the Reliance Power IPO will significantly contribute to reducing the demand-supply gap for the power in the country at competitive rates, it added.
Source : http://www.rediff.com/money/2008/jan/15rpl.htm
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