The Reliance Power initial public offering (IPO) is ready to hit the street on January 15 in a price band of Rs 405 to Rs 450. Each share has been priced at Rs 405 at the lower end and Rs 450 at the upper end of the band. The company plans to offer the retail investors or those applying for Rs 1 lakh, a 5 per cent discount. Reliance Power IPO would raise between Rs 10,500 crore to Rs 11,700 crore with the sale of 26 crore shares in the public offer.It is estimated that at this issue price the company's market cap will be anywhere around Rs 1.1 lakh crore, which will make it the biggest listed company within the Anil Ambani empire and among the top 10 stocks on the Bombay Stock Exchange. The big question is whether the company's fundamentals are really that strong for it to deserve such valuations especially since its parent company Reliance Energy's market cap is just about half of Reliacne Power.
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