REL arm plans Rs 10 bn IPO
REL arm plans Rs 10 bn IPO >Reliance Energy`s (REL`s) wholly-owned subsidiary, Reliance Power (RPL), is planning to enter in the capital market by raising Rs 110 billion through initial public offer, reports Business Standard. This is considered to be the largest issue in recent times, after DLF and ICICI Bank. It is expected that the company will file a red herring prospectus with SEBI within a week. Reliance Power would utilise the IPO money to meet the financial requirement of its existing projects as well as expansion. Recently, the company bagged the 4,000 MW coal-based Sasan project. The Sasan project is expected to be completed in five years. It will require 15 million tons of coal per annum and will supply power to seven States that are MP, UP, Delhi, Rajasthan, Haryana, Punjab and Uttarakhand. The news of the possibility of a public issue of Reliance Power rais ed the share price of Reliance Energy, as the issue will increase the valuation of the company.
Shares of the company gained Rs 88.25, or 7.9%, to trade at Rs 1,205.5. The total volume of shares traded was 3,538,681 at the BSE.(1.48 pm ,Friday)
