Reliance Power IPO ready with allotment

Wednesday, January 30, 2008

Reliance Power IPO ready with allotment

Anil Ambani Group firm Reliance Power, which had come out with the country’s biggest ever IPO, is expected to complete the allocation of shares tomorrow (January 31) and commence refund of excess application money (about Rs 1 lakh crore) on February 1 banking sources said.

The offer, which saw the highest number of retail applications for a new issue, will see close to 43 lakh applicants getting 15 shares each. Retail applications for the IPO stand at over 50 lakh.

Around 6.84 crore shares have been reserved in the retail category, which was subscribed 14 times.

After the issue closed, chairman Anil Ambani had said the company would try to give shares to every retail investor.

Officials at Reliance Power would not comment on the share allocation as they were in the “quiet period’’. Sources said about four lakh applicants for less than 225 shares would not get any share.

Close to three lakh applications have been disqualified. At 43 lakh, Reliance Power will have the world’s largest shareholder base after the listing.

The portion reserved for qualified institutional buyers was subscribed 82 times, and the 445 investors in the category are likely to get about 1.2 per cent of the quantity they had applied for.

The IPO opened on January 15 and closed on January 18. It was over-subscribed 73 times. The price was fixed at the top end of the price band of Rs 405-450 per share.

The IPO received subscriptions of over $100 billion from foreign investors, and the value of retail bids stood at over Rs 44,000 crore or $11 billion.

See also...

Reliance Power IPO bid details

Reliance Power IPO Subscription status update

Rel Power IPO subscribed 73x; gets bids of Rs 7.5 lk cr

Rel Power IPO subscribed 23x; gets bids of Rs 2.34 lk cr

Reliance Power will go a long way, says experts

Electrifying response to Rel Power IPO, subscribed 14x

Rel Power IPO subscribed 10.5x; receives bids of $ 27.5 bn

Reliance Power IPO bidding starts tomorrow (15th Jan)

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