Reliance Power IPO

  Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating[1/5]Total Votes [ 1 ]  
  Rate this page:
Reliance Power IPO is one of the largest IPO in the Indian Stock market. It has been floated by Reliance Power, which ranks among the biggest power industries in the country. Due to high market value and performance, more and more people and shareholders across the country had opted for the Reliance Power IPO to get high returns on their money and enjoy a lucrative investment channel.

Reliance Power is one of the front runners in the power sectors in India. It is a part of the prestigious Reliance ADA group and the main objective of the company is to develop and operate power projects in the domestic as well as the international scenario. Presently, the company is making around 12 mid range and large power projects which will have a combined power capacity of around 24,200 MW. These projects are some of the largest power generation assets in the country.

Features of Reliance Power IPO

According to recent surveys, Reliance Power IPO had issued around 130 crores value of equity shares in the market. Each share was priced at around ` 10.

The net issue of the shares that were issued to the public amounted to around 114 crores. Around 16 crores of equity shares were taken from the contribution of the promoters. As per the management's decision, Reliance Power IPO had a stake of around 11.5% of the post issue paid up capital while the net issue was around 10.1% of the company's post issue paid-up capital amount. The equity shares which were allotted to the equity market have been listed in the Bombay Stock Exchange and the National Stock Exchange within some more days. The company hopes that the share will really add to their revenue and also make the shareholders financially secure.

Disagreement with SEBI

There was a disagreement in the terms and conditions between Reliance Power IPO and the SEBI (Securities and Exchange Board of India). There were some problems in the share pricing and as such the SEBI had not agreed to the report that was presented by the company. After the disagreement, Reliance Power IPO had to change some terms and conditions to meet the conditions set by SEBI. After the change, the company changed the face value of its shares from ` 2 to ` 10.

Payment options of Reliance Power IPO

There are around two options for the payment of Reliance Power IPO. In the first method, the investors could apply through the internet. In the first payment pattern, only the retail individual bidders and the non institutional bidders were eligible. In the process of bidding, the bidder needed to make a payment of a particular sum of money per equity share that he or she was willing to take. This was irrespective of the price of bidding. The total amount of bidding would be used to ascertain whether the value falls under the non institutional category or retail individual category. This will have been determined after the submission of the Bid-Cum-Application Form.

In the second method, various categories of the bidders took part in the method. While making the bidding method, the bidder must make the full payment for the equity shares that had been allocated. If the bidder is of the QIB category, he or she will be needed to make a payment of around 10% of the Bid Amount which will be multiplied by the number of shares that are being bid. The balance will be payable on the allocation before the shares are allotted.

>> More Investment in India