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Introduction:
Industry: Power Generation & Operation Group: Anil Dhirubhai Ambani Group
IPO Snapshot
Public issue of 26,00,00,000 equity shares (constituting 11.50% of post issue paid up capital of
issuer)
Application for the Issue can be for 15 shares and in multiples of 15 shares thereafter
ALLOTMENT BASIS
The payment methods available to the investors to apply in this public issue of shares:
A discount of Rs.20 to the Issue Price determined pursuant to the completion of the book
building process shall be offered to the retail individual bidders.
Total 160,000.0
Of which:
a. PROMOTER’S CONTRIBUTION
Promoters:
Performance:-
After the listing company performance was very poor we can see it from the performance
chart.
After an unexpected poor performance on listing of Reliance Power, Anil Ambani finally
decided to come out with bonus shares. To remain in the race and do not loose investors trust
in ADA group, company today announce to offer free bonus shares for Reliance Power
investors (non promoter). Final decision will be taken in company's board meeting.
Company share price continuously decreasing. As per the 28.9.10 company share price is
164.91.
News about the Reliance Power Limited:
Mr Salve, who mentioned the petition before the Bench, alleged that the PIL was motivated and
filed to cause undue harassment to RPL. He said that PIL was now being used as a surrogate
weapon to fight corporate war. He said that the NGO had filed the petition before the Gujarat
High Court after the Securities and Exchange Board of India had cleared the IPO. In the appeal,
the Securities Appellate Tribunal did not stay SEBI’s order.
He contended that the Gujarat High Court was to take up the PIL for hearing today and if the
apex court did not interfere then similar petitions would be filed to blackmail the company. He
said that the IPO could not be reversed as it would affect the capital and stock markets. “We are
into an international project and the world is looking at us. The project would go if the IPO was
stopped and foreign institutional investors would not come,” he said.
Mr Salve submitted that according to the information received from various sources, several
other PILs were to be filed in some other High Courts to obstruct the IPO of the company. This
would not only be against public interest but also against the interest of the investors. While
seeking stay of all further proceedings in the Gujarat High Court, RPL sought a direction to
transfer all the pending litigations to the Bombay High Court since the registered office of the
company was situated in Mumbai, reports The Hindu Business Line.
Rel Power IPO subscribed 73x; gets bids of Rs 7.5 lk cr
The initial public offer of Reliance Power, Anil Dhirubhai Ambani Group Company,
has received an excellent response since day one despite negative sentiment in markets as well as
across the globe. The issuesubscribed 73.04 times and received bids worth about Rs 7.5 lakh
crore.
The reserve portion of QIBs subscribed 83 times and non institutional investors 190 times and
retail nearly 15 times.
Subscription Details
Investors Times
Qualified institutional buyers 82.62
Non institutional investors 190.02
Retail individual investors 14.87
Total 73.04
The issue received bids for 16.65 billion equity shares as against 22.8 crore shares on offer.
The price band is between Rs 405-450 per share. The company is likely to raise more than Rs
10000 crore from this public issue excluding promoters’ contribution.
Conclusion:
As per the analysis of the reliance power limited from the performance chart we
came to know that when the IPO was listed in the market price was 450 after that price
continuously decreasing from last 2 years. The company is in the market because the goodwill of
the reliance group industry is very good.
As per the analysis of the last 2 years performance is not good but from last month price of the
shares are increasing that is the good sign for the company but to taking in the consideration
future of the company’s share price is not good because it was issued on the 450 after that it
never touch the price band of the 450. To touch the price band of the 450 is very difficult.
References:
www.moneyvriksh.com/ipo
www.moneycontrol.com
www.reliancepower.co.in
For news
www.moneycontrol.com/news/business/reliancepowerlimited