Anil Dhirubhai Ambani-led Reliance Power, whose initial public offer raised $3 billion within a minute of opening, has priced the IPO at the top end of the price band at Rs 450 per share, valuing the firm at $30 billion.Reliance Power IPO had ended on 18 January 2008 with 73.04 times subscription. The IPO had mopped up bids for 1665.20 crore shares as against 22.80 crore shares on offer.
The qualified institutional buyers (QIBs) category was subscribed 82.61 times, the non institutional investors portion was subscribed 190.02 times and the retail portion was subscribed 14.87 times.
The company had set the price band between 405-450 per share. Retail investors were offered a discount of Rs 20 per share.
Rating agency Crisil assigned an above average 4-on-5 rating to the proposed initial public offer of Reliance Power. ICRA had assigned IPO Grade 4, indicating above average fundamentals, to the IPO. ICRA assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 poor.
It is estimated that at this issue price the company's market cap will be anywhere around Rs 1.1 lakh crore, which will make it the biggest listed company within the Anil Ambani empire and among the top 10 stocks on the Bombay Stock Exchange.
The company plans to use the issue proceeds to fund subsidiaries to part-finance the construction and development costs of its projects under development and for general corporate purposes.
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