Reliance Power Hovers Below IPO Price

The Reliance Power (RPower) counter saw high volume of 38.61 lakh shares shares in opening trade on BSE. Reliance Power had priced IPO at the top end of the Rs 405-450 price band. Retail investors were offered shares at Rs 430 i.e. at a discount of Rs 20 per share.

Reliance Power will also be simultaneously listed on the futures and options segments of BSE and NSE. Lot size of Reliance Power on NSE''s futures and options segment is set at 450. Reliance Energy (REL) and closely held promoter group company, AAA Projects hold equal 45% stake in Reliance Power. Reliance Power IPO had got overwhelming investor response. The issue had got an aggregate commitment of over Rs 7.50 lakh crore, as against the issue size of Rs 11,560 crore. With around 42 lakh shareholders, Reliance Power will be the largest shareholder base company among the companies listed on the stock exchanges. The qualified institutional buyers (QIBs) category was subscribed 82.61 times, the non institutional investors portion was subscribed 190.02 times and the retail portion was subscribed 14.87 times.

Reliance Power is developing 13 power generation projects with a capacity of 28,200 megawatt (MW). These 13 projects are to be executed over the next eight years. All power projects, except one at Dadri in Uttar Pradesh are to be executed through various subsidiaries of the company and are currently under various stages of development. The company plans to use the IPO proceeds to fund subsidiaries to part-finance the construction and development costs of its projects under development and for general corporate purposes.

ADAG Activates Co Channels For Power IPO Tunes

AHMEDABAD: If you have called a Reliance CDMA subscriber of late, a clamorous, but familiar sound coming from the other end, might have confused you. But, a couple of seconds later you realise that it’s smart marketing technique, reaching out to the clients with every possible channel available. The Power On. India On jingle is being played on Reliance phones as a part of the ongoing campaign for Reliance Power IPO.

And that’s just one example. Corporate houses today are becoming smarter as far as creating a favourable hype around their IPOs are concerned. And the most recent example is the Reliance Anil Dhirubhai Ambani Group.

Reliance ADAG is utilising all its possible mass media products and tools to extensively advertise for the Reliance Power IPO. Reliance ADAG’s media activation plan includes TVCs being showcased in 62 Adlabs theatres across the country, ads on ADAG’s radio channel, Big FM, across 39 cities, leaflets on bills at Reliance Energy Customer Care Centres, and leveraging through 250 Reliance World, 1,300 Reliance Express and 2,000 Reliance Money outlets.

However, the most interesting one remains the caller back ring tone (CRBT) activated across 35-40 million subscribers of Reliance Mobile World, by default. No matter which mobile operator’s services you use, the moment you call a Reliance subscriber, you hear the current hot words : Power On. India On. and the Reliance user will himself have to opt out of the service or change the CRBT, if he does not want it, which seldom happens.

A company official claimed possibly this is the first time such a campaign is being carried by a business group, especially with the CRBTs in place. The cost of the entire campaign is Rs 20 crore; pretty negligible as compared to the money the IPO will attract.

“The challenge was to market the IPO like a consumer product and penetrate into the minds of each potential investor. Keeping the big picture of Power on. India on in mind, the campaign goes way beyond the 30-second TV spot. Leveraging various products of the group was a very conscious decision,” says branding head-Reliance ADAG Girish Shah. Keeping in mind the frenzy around the IPO, Reliance Money has also geared up for the action. The trading and demats opened in last 30 days totalled 1.5 lakh while the total of last one year was barely 3 lakh accounts.

SC Clears Hurdles Against Reliance Power IPO

NEW DELHI: The Supreme Court (SC) on Friday cleared the decks for Reliance Power's IPO. The IPO, one of India’s largest, is scheduled to hit the market on January 15.

“The IPO of Reliance Power will go on despite any interim order passed against it by any court or tribunal in the country,” ordered a three judge bench headed by Chief Justice KG Balakrishnan.

The court said no order issued by any court or tribunal in the country shall come in the way of the Reliance Power’s IPO. The court passed the order on a plea by Reliance Power.

Senior counsel Harish Salve and advocate Mahesh Agrawal, on behalf of the Anil Dhirubhai Ambani Group-promoted Reliance Power, said any court or tribunal could pass an order restraining the company from coming up with its IPO.

Reliance Power, in its application, said that after petitions in the Gujarat High Court, a suit has been filed in a civil court in Mumbai. Petitions may have been filed in other courts which may pass an order against the scheduled IPOs, Reliance Power said.

The objections against the offer were raised before the Securities Appellate Tribunal (SAT), which had heard the matter and fixed January 14 for the final hearing, said Mr Agrawal in seeking direction of the apex court to clear all legal hurdles in the matter.

On January 9, the apex court had stayed the proceedings in the Gujarat High Court against Reliance Power’s IPO. The court passed the order on a plea by Reliance Power and Reliance Energy. The court had also issued notice to the petitioner in the high court, a Rajkot-based NGO Grahak Suraksha Mandal.

The company, in its petition, said that the Securities and Exchange Board of India (SEBI) after considering the objections on December 27 had permitted it to issue IPO. Thereafter, the objections were raised before the SAT.

While the matter is pending before SAT, the Rajkot Mandal and another party have filed two petitions under the guise of PIL seeking stay on it IPO, alleged Reliance Power. It said the Gujarat HC has no jurisdiction to entertain a petition in relation to the public issue.