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Reliance Power IPO was largest ever in the history of Indian capital markets which received over 5mn bids with commitment of Rs7500bn.
Reliance Power, part of the Reliance Anil Dhirubhai Ambani group which recently completed its initial public offering (IPO) has completed the allotment of shares to successful investors, as per the basis of allotment approved by the stock exchange. The company has commenced refunding the excess application money today. The refunds to QIBs and Non Institutional Investors have been effected today through electronic credits. The allotment and refund exercise post closure of the IPO has been carried out in a record short time of 10 working days considering that this IPO was by far the largest in the history of Indian capital markets. Reliance Power IPO attracted over 5mn bids from all categories of domestic and international investors with aggregate commitment of over Rs7500bn, as against the issue size of Rs115.6bn. 60% of the net issue reserved for Qualified Institutional Buyers ("QIBs"), was oversubscribed 82.5 times. 5% of this category has been allotted on a proportionate basis to Mutual Funds only. An aggregate of 446 domestic and international QIBs will receive only 1.2% of their applied quantity of shares. 10% of the net issue reserved for Non Institutional Investors was oversubscribed 159.6 times. About 12,000 Non Institutional Investors will receive only 0.6% of their applied quantity of shares. 30% of the net issue reserved for Retail investors was oversubscribed 13.6 times. Retail investors have been issued shares at a discount of Rs20 i.e. at Rs430 per share. Over 41.7 lakh successful bidders in the retail category will get around 15 shares each while approximately 4.5 lakh retail investors who bid for less than 225 shares would not get any shares according to the allocation as approved. The excess application money of approximately Rs one lakh crore received from the investors is being refunded to the investors. Post allotment Reliance Power has approximately 42 lakh shareholders. The Equity Shares, offered through this IPO, will be listed on Bombay Stock Exchange Limited ("BSE") and National Stock Exchange of India Limited ("NSE") shortly.
Source : indiainfoline.com |
