In order to do away with the liquidity crunch caused by the initial public offer of Reliance Power, the company today sought permission from the Securities and Exchange Board of India (Sebi) to fast-track the allotment process to qualified Institutional bidders (QIBs) who had subscribed to its IPO.
Sebi officials, however, declined to comment on the issue.
One of the book running lead managers, on the condition of anonymity, stated that the the company has proposed to make an early allotment to the 500-odd QIBs which have bid for Rs 5,08,486 crore as against the total Rs 6,156 crore on offer.
The letter to the regulator said that a fast-track allotment to QIBs will facilitate immediate refund of excess application money received from QIBs, with the objective to refund excess application money to QIBs to the tune of approximately Rs 40,000 crore.
According to the bankers such a move could enable releasing the participatory note (P-note) capacities of foreign institutional investors which, as per market estimates, could be to the tune of Rs 1.60 lakh crore and which are currently fully utilized leaving no opportunity to FIIs to make fresh purchases.
The total amount collected from QIBs in the issue aggregated Rs 5,08,486 crore, while the size of the QIB portion (at the issue price of Rs 450 per equity share) will be Rs 6,156 crore.
The QIBs have paid 10 per cent of the issue price, aggregating to approximately Rs 50,848 crore.
