Reliance Power – the company which has a record 28,200 MW of power generation capacity in the pipeline – expects its shares to be listed on the bourses by the first week of February, company chairman Anil Ambani announced today.
Reliance Power will offer its shares for sale to the public from Jan 15-to-18 at a price band of Rs 405-450 per share. The share sale, aimed at mobilising up to Rs 11,500 crore, would be the country’s biggest mop-up through an initial public offer.
This offer would also chalk another first. It will be the first issue where retail investors will get a discount of about 5%.
Ambani ruled out a pre-IPO placement – “despite a number of requests for such deals”, he said at a press meet in Mumbai.
Reliance Power currently has no plant in operation.
The proceeds of the issue will be used for the projects like Rosa and Urthing Sobla in Uttar Pradesh, Sasan in Madhya Pradesh and Butibori and Shahapur in Maharashtra.
He said that the company would take the subsidiary route to develop the capacity in the pipeline. He also said that the company will not be limited to coal and gas fired plants, but will also invest in wind power and nuclear power.
A foray into power equipment manufacturing is also on the cards though this will not be through Reliance Power or through Reliance Energy, which holds 50% of Reliance Power.
The company plans to hire 5,000 people to build and man its power plants.
The issue will constitute 11.5% of the post issue paid-up capital of the company.
Reliance Anil Dhirubhai Ambani Group (R-ADAG) could also foray into the manufacturing of power equipment, and is currently in talks with global power equipment majors for possible joint ventures.
''This is to meet the cost and delivery schedules of our power projects,'' Ambani said.
This venture will neither be under Reliance Power nor Reliance Energy but under a different entity altogether, Ambani added.
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