Reliance Power has 42 lakh shareholders

Friday, February 1, 2008

Reliance Power has 42 lakh shareholders

Refunds at over Rs 1 lakh crore

Nearly 4.5 lakh retail investors, who applied for less than 225 shares of Reliance Power each, have not been made any allotments by the company.

This means that RPL has issued shares to only those applicants who committed to invest at least Rs 96,750 in its IPO.

The company’s IPO, which created several records on many counts and also created a liquidity crisis, said it had today commenced making its refunds of more than Rs 1 lakh crore.

This was in fact partly responsible for the reversal of the downward trend in the market earlier in the day.

The company has allotted 15 shares each to 41.7 lakh retail investors who applied for more than 225 shares each.

The company said it now had 42 lakh shareholders. There had been 50 lakh bids for the IPO.

Reliance Power had fixed the issue price at Rs 450, the upper end of its price band, after receiving subscriptions for 73 times the number of shares on offer. Retail investors were given shares at a discount of Rs 20, at Rs 430 per share.

The issue had attracted over 50 lakh bids from all categories of investors.

The refunds to QIBs and Non Institutional Investors have been effected today through electronic credits, said a statement from the company.

An aggregate of 446 domestic and international QIBs will receive only 1.2 per cent of their applied quantity of shares.

About 12,000 HNIs will receive only 0.6 per cent of their applied quantity of shares.

The QIB portion was subscribed 82.5 times; and high net worth individual category 159.6 times.

Thirty per cent of the net issue was reserved for retail investors whose subscription was 13.6 times the portion reserved for them.

Refund in 10 days

“The allotment and refund exercise post closure of the largest IPO ever has been carried out in a record time of 10 working days,” the company said in a statement.

The largest Indian public issue opened for subscription on January 15The IPO offered 26 crore shares of face value Rs 10 each in the price band of Rs 405 to Rs 450. It raised Rs. 11,500 crore.

Investors had made aggregate commitments of more than Rs 7,50,000 crore.

The stock market’s key indices the Sensex and the Nifty gained 3.3 per cent and 3.5 per cent respectively.

The IT sector was the largest gainer in today’s rally, rising by 5.77 per cent.

Source : Business Line

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