Reliance Power IPO issue price at Rs 450, what about allotment
Sunday, January 20th, 2008
Retail investors committed Rs 44,000 cr
Mobilises record Rs 1.15 lakh crore deposit
Assurance on allotment to retail investors
Mumbai, Jan 19 Reliance Power IPO’s issue price has been fixed at the top end of the price band at Rs 450 per equity share of Rs 10; the issue is likely to get listed some time in February after the allotment of shares to applicants.
On the prospects of retail investors getting allotment of shares, Mr Anil Ambani, Chairman, Reliance Anil Dhirubhai Ambani Group , said, “It will be ensured that each and every applicant is allotted a bare minimum number of shares.”
Retail individual investors bid 14.4 times the 6.84 crore shares offered under the retail quota. Price for retail investors has been fixed at Rs 430 per share, a discount of Rs 20 per share.
“The issue received a record 50 lakh retail applications and the retail investors made a commitment of Rs 44,000 crore, which was enough for the issue to have been fully subscribed by the retail investors itself,” Mr Ambani, told newspersons during a press conference in Mumbai on Saturday.
In terms of total application money deposited in banks, again the Reliance Power IPO set a record by mobilising Rs 1.15 lakh crore, it was stated during a media briefing on the highlights of the public issue.
The largest IPO in terms of money being raised, at Rs 11,700 crore, drew a phenomenal response from both institutional and retail investors by taking the subscription count to 73 times the 22.8 crore shares on offer, as per the final composite data after the closure of the issue on January 18.
Retail investors also had the option of depositing Rs 115 per share at the time of application.
Corporates’ and the high net worth individuals’ bids reached 190 times for 2.28 crore shares on offer. The portion reserved (13.68 crore shares) for qualified institutional buyers including FIIs got subscribed 82 times.
Source: The Hindu Business Line