Reliance Power IPO has big start, oversubscribed

The $3 billion Reliance Power IPO had a big-bang opening on Tuesday morning and the issue was oversubscribed 6.7 times at Rs 450 per share — the upper end of the price band — within hours of opening of its book building process.

Billed as India's largest initial public offer, the IPO is drawing huge response from investors.
The Qualified Institutional Buyers or QIB portion has been subscribed 11.3 times with bids worth $17.6 billion.

Most of the bids for the issue has come in at the upper band of Rs 450 per share
According to latest data available, the IPO received bids worth over Rs 40,000 crore in the first five minutes of the book-building process.

Over 228 million shares of the Anil Dhirubhai Ambani Group company are on offer in the country's largest-ever IPO with an estimated proceeds of Rs 11,700 crore.

The issue will close on January 18. The price band is between Rs 405-450 per share. The total issue size is of 260 million shares, including the promoters’ contribution of 32 million shares.

Over 30 per cent of this issue is reserved for retail investors with two payment options. Investors can pay in staggered installments or make a full payment upfront.
Retail investors have been also offered a discount of Rs 20 per share, which implies their net cost of subscription will be Rs 430 per share, if they choose to bid at Rs 450 per share

Courtesy:ibnlive.com
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