Well I am very late bringing this IPO news to all of you.But better late than never.Relaince Power IPO which is slated to become the largest of all the IPO’s hitting the markets till now.This has been the center stage of all buzzing news in the market for the last one month or so.All the investors are excited about this offer coming on in their way.

The issue has already opened on Jan 15th and is closing today on Jan 18th.The price band has been fixed at Rs 405-450 levels.The issue constitutes 10.1% of Reliance Power’s total equity.That means the company is now valued at Rs 110,000 crores.Looking at the performance of the ADAG group shares in the last year this IPO is expected to do well.

With India getting into the modernization plan,it needs continuous  power generation to keep all the action going on.Hence power sector is so important nowadays.There is competition coming in from other companies like NTPC,India’s largest power generating company,then TATA power,Neyveli Lignite etc.So there is lot of scope already in this sector.

Meanwhile Relaince Power has a plan to set up 13 projects with total capacity of 28,200 mw.Of the total capacity 10,300mw is gas based,3,300 is hydel and the rest is coal based ones.There are news that it has been over subscribed by 73 times and has received bids worth 7.5lakh crores.The non institutional investors subscribed 200 times and retail investors 15 times.It is expected to raise about 10,000 crores from the markets leaving behind the DLF’s IPO which raised around 9000 crores from the markets.

The enthusiasm is so much that even some smart brokers are helping the investors to put money even without a valid demat account.A few even sold their holdings to make up capital to invest in this issue.Market watchers feel that Relaince Power IPO to do well in medium term basis.The out look looks very bright.Anyways keep watching this space for more on this issue in coming days.

Powered by MightyAdsense

Related posts:

1. Reliance Power Board Okays IPO Plan