Reliance Power files papers for IPO

Anil Ambani group firm Reliance Power (RPL) filed a draft prospectus with the Securities and Exchange Board of India (Sebi) today for an initial public offer (IPO) to raise up to Rs 14,000 crore.

This would make it the largest public offering in the country, ahead of real estate company DLF which raised over Rs 9,000 crore, sources said.

"The issue proceeds are proposed to be utilised for funding subsidiaries to part-finance the construction and development costs of various projects and for general corporate purposes," the company said.

The public issue by Reliance Power, which recently bagged the 4,000MW Sasan Ultra Mega Power Project, is considered to be a part of revenue mobilisation exercise for its estimated Rs 1,00,000 crore investment plans.

The company proposes to issue 130 crore equity shares of face value Rs 2 each, which would constitute 11.5% of its post-issue share capital, according to a BSE filing by Reliance Energy, Reliance Power's parent company. The company will also allot 160 crore shares to its promoters.

The pricing of the issue will be decided through a 100% book-building process.

Kotak Mahindra, UBS Securities, ABN Amro Securities, Deutsche Equities India, Enam Securties, JM Financial, ICICI Securities and JP Morgan India are the book running lead managers to the issue.

Around 60% of the net issue to the public will be allotted to qualified institutional buyers, of which 5% will be earmarked for allocation to mutual funds. Another 30% of issue will be made available for subscription by retail investors. The remaining 10% will be allocated to non-institutional buyers.