Awaits government nod for plan to develop mines in a strategic partnership with North American Coal Corporation.
Reliance Power Limited, the flagship company of the Reliance Anil Dhirubhai Ambani Group(ADAG), plans to invest about Rs 2,500-3,000 crore over a period of three years, to develop three coal mines to fuel its Sasan Ultra Mega Power Project in Madhya Pradesh.
“We have submitted the plan for the pit-head mines, to be developed in a strategic partnership with the North American Coal Corporation (NACC), to the ministry of coal and expect the final clearance within a few months,” a top Reliance Power, official told Business Standard.
NACC, the largest lignite coal producer and among the top ten coal producers in the US, will provide technical assistance, including evaluation of geological data, mine planning and design, supervision of mining operations and training for Reliance professionals, according to the memorandum of understanding (MoU) signed with Reliance Power.
Biggest ever
Sources said the coal mining plans of Reliance Power for the Sasan project would be one of the largest and unprecedented in India, with advanced coal handling equipment.
One of the transportation vehicles (of 240 tonne capacity) that will be used is equivalent to the size of four railway wagons.
The company has placed orders for modern coal handling equipment with four to five leading manufacturers in the US and Europe, said the official.
Sasan Power Limited (SPL), a fully owned subsidiary of Reliance Power, has about 750 million tonnes of coal reserves at Moher (capacity of 402 mt), Chattrasal (150 mt) and Moher-Amlori Extension (198 mt), over an area of about 6,000 acres in and around the proposed power project.
Coal requirement
The Rs 18,300 crore Sasan project is scheduled to go on-stream with the first 660 mw unit of the 3,960 mw project to go on-line ahead of schedule within a few years. The ultra mega power project will require about 15 million tonnes of coal annually.
According to sources, Reliance Power was among the first to submit a coal development plan for captive coal blocks allocated in the past few years.
The Sasan project was awarded to Reliance Power in August 2007 and the coal development plan was developed and submitted within few months, said the official.
First of nine
In the case of some captive coal blocks allocated to power producers such as National Thermal Power Corporation, the development plan has not been submitted even after nearly five years, the sources said.
Sasan is the first of eight or nine such mega power projects planned in the country, and was scheduled to be fully commissioned by April 2016, with six 660 mw units planned.
However, Reliance Power is working to commission the project ahead of schedule by fast tracking the entire process, said the official.
Reliance Power currently has access to coal reserves of about one billion tonnes in India and abroad, including a coal mine in Indonesia, which it acquired recently.
In India, the company has access to another 150 million tonnes of coal, along with five others who were allocated mines in Orissa and Chattisgarh.
Reliance Power is setting up 13 projects with a total capacity of over 28,200 mw. Seven of them are coal fired projects. Coal will be imported for the Krishnapatanam and Shahanpur projects.
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Tuesday, March 25, 2008
R-Power to spend Rs 3,000 cr for mines to fuel Sasan project
Sunday, February 24, 2008
Rel Power announces 3:5 bonus ratio
In an unprecedented move, Anil Ambani Group company Reliance Power will give free bonus shares in the ratio of 3:5 to all its shareholders to compensate the losses they suffered when the company was listed a fortnight ago.
Reliance Power today announced a bonus isse in the ratio of 3:5., i.e three free shares for every five shares held by a shareholder.
The company's board had last Sunday announced its plans to issue bonus shares to all shareholders excluding the promoters.
The company had recently issued shares at Rs 450 while giving a discount Rs 20 a share to retail investors.
Wednesday, February 20, 2008
R-Power bonus after payment of call money
Reliance Power today announced that the company will allot the proposed bonus shares only to investors who will make the balance payment before February 26.
According to a release issued by the company to the BSE today, the bonus shares of investors who do not pay the call money by the due date will be kept in abeyance.
Monday, February 4, 2008
Reliance Power listing on Feb 11
Reliance Power shares will make their debut in the secondary market on February 11 with the shares being listed on the Bombay Stock Exchange and National Stock Exchange.
The company, which attracted over 5 million bids from all categories of domestic and international investors with aggregate commitment of over Rs 750,000 crore, will have a shareholder base of 4.2 million.
Thursday, January 17, 2008
Rel Power grey mart premium declines
The grey market premiums for Reliance Power Ltd. are now witnessing a sudden downturn in line with a sharp fall in key benchmark stock indices.
The grey market premium, which was quoting at Rs 450 a day before the RPL issue opened, has now slipped to Rs 350 as investors have toned down their listing price expectations from Rs 900 a share to Rs 750.
The grey market is an unofficial market for IPOs and acts as a price discovery mechanism before an issue opens for subscription and mostly operates in Ahmedabad, Rajkot, Kolkata and a few other smaller cities.
According to grey market operators, apart from a falling market, the premiums start falling towards the end of the subscription date as players start booking profits in the grey market itself.
This pattern was also observed in past high-profile IPOs including Reliance Petroleum, DLF and Mundra Port SEZ.
Grey market players include big brokers, high net worth individuals and other market operators.
These players, who started buying shares from those who have applied for the issue, are booking profits in the grey market itself, rather than waiting for the shares to list on the stock exchanges.
The fact that the Sensex has fallen nearly 900 points in the last two days coupled with investors’ requirement for immediate money has led to this trend, said a broker.
The grey market works in the following way: Once the IPO allotment is finished and the shares get listed, brokers ‘collect’ these shares from the accounts of the “investors” and transfer it to their accounts.
Once trading begins, the applicant transfers the shares into the grey market operators’ account through a block deal on the trading screen.
The shares are transferred on the pretext that these shares would be sold in the open market, just as most IPO investors do to earn the listing premium. Later, these shares are transferred to the person who wants to corner a sizeable chunk of the issue.
However, by drawing parallel to the IPO of Mukesh Ambani-promoted Reliance Petroleum Ltd’s IPO in 2006, the price of which recorded a steep fall after listing at Rs 101, some of the genuine HNIs making applications with margin funding are now treading a cautious path.
Tuesday, January 15, 2008
Reliance Power IPO subscribed over 10 times
Reliance Power - the largest IPO of the country till date - opened for subcription today, and has been subscribed 10.55 times at 1800 hrs.
According to data avaliable on the NSE website, the issue received bids for 2404.95 million shares as against the issue size of 228 million shares.
The maximum bids (over 2300 million) was made at Rs 450 per share.
The company had fixed a price band of Rs 405-450 per share with a discount of Rs 20 for retail investors.
Friday, January 4, 2008
Rel Power to be listed by early Feb
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.
