An over 10.5-times over-subscription of the Reliance Power IPO has catapulted this mega public floatation to the largest ever in the country when it opened this morning. The issue closes on January 18.
The 228 million shares of a face value of Rs10 each, offered in the price band of Rs405 to Rs450 attracted bids for 2,397,558,825 shares.
Even as the issue was oversubscribed, the 30-share benchmark Sensex dropped 2.30 per cent or 476.96 points, to 20,251.09 points, suggesting that investors were divesting their holdings to subscribe to the Reliance Power IPO. Consequently stocks across the board ended in the red.
Incidentally, promoter Anil Ambani and his associates bought the promoters' stake of 45 per cent Rs450. Thirty per cent of the 228 million shares have been reserved for retail investors at a discount of 5 per cent.
Reliance Power says it proposes to use the funds to build power generation units across the country with the funds.