Reliance Power, a unit of Reliance Energy, plans to raise up to $2.9 billion in what would be India's biggest public offering, investment bankers said. The previous highest initial public offer (IPO) was by property giant DLF which raised $2.24 billion last July. Reliance Power will offer 260 million shares through the IPO or 10.1 per cent of the company's capital. The company aims to raise between Rs 105 billion and 115 billion ($2.6 billion to $2.9 billion) through the offering, which will be open for subscription from January 15 to January 18, investment bankers said. The shares will be offered in the Rs 405 to Rs 450 price band. Power generation growth will be similar to what India witnessed in the telecom sector, company chairman Anil Ambani told a news conference.
Monday, January 7, 2008
Saturday, January 5, 2008
Subhiksha Plans IPO This Year
New Delhi: The Chennai-based discount retail chain Subhiksha Trading Services Ltd said that it would announce its Initial Public Offering (IPO) this year.
R. Subramanian, Managing Director, told Business Line, “We will announce the IPO this year. In fact, I would be very surprised if that doesn’t happen this year. However, I will restrain from putting a time limit of say three months or six months to it.”
According to earlier reports, Subhiksha had planned its IPO by the second half of 2007, as soon as it completed 1,000 stores across the country. Subramanian said, “We were supposed to float the IPO after we completed 1,000 stores. However, today we are well above that mark and about to touch the 1,400-1,500 store mark by March, and are still well stacked in terms of finances.”
• Check out our Yearender Special
He said the company was still evaluating market conditions with a team of its in-house venture capitalists, consultants and accountants, all of whom are members of the company’s board of directors. Subramanian had earlier said that the IPO was more for the purposes of listing than raising money for expansion. He had said, “We want the IPO to give liquidity to shareholders.”
Subhiksha is a discount format modern trade organisation that operates through four verticals - fruits and vegetables, pharmaceuticals, FMCG and telecom. Its direct supply arrangements with manufacturers help it reduce the supply-chain costs, in turn helping it keep prices of all products much lower than the market levels.
The company was formed in 1997 in Chennai, and currently operates over 1,000 outlets across 90 cities. ICICI Venture Capital holds 24 per cent in the chain.
R. Subramanian, Managing Director, told Business Line, “We will announce the IPO this year. In fact, I would be very surprised if that doesn’t happen this year. However, I will restrain from putting a time limit of say three months or six months to it.”
According to earlier reports, Subhiksha had planned its IPO by the second half of 2007, as soon as it completed 1,000 stores across the country. Subramanian said, “We were supposed to float the IPO after we completed 1,000 stores. However, today we are well above that mark and about to touch the 1,400-1,500 store mark by March, and are still well stacked in terms of finances.”
• Check out our Yearender Special
He said the company was still evaluating market conditions with a team of its in-house venture capitalists, consultants and accountants, all of whom are members of the company’s board of directors. Subramanian had earlier said that the IPO was more for the purposes of listing than raising money for expansion. He had said, “We want the IPO to give liquidity to shareholders.”
Subhiksha is a discount format modern trade organisation that operates through four verticals - fruits and vegetables, pharmaceuticals, FMCG and telecom. Its direct supply arrangements with manufacturers help it reduce the supply-chain costs, in turn helping it keep prices of all products much lower than the market levels.
The company was formed in 1997 in Chennai, and currently operates over 1,000 outlets across 90 cities. ICICI Venture Capital holds 24 per cent in the chain.
India's JSW Energy Plans $1 Billion IPO
India's JSW Energy Ltd aims to raise up to $1 billion from an initial public offering, a banking source close to the deal said on Thursday, a sale which would follow Reliance Power's planned raising of nearly $3 billion. JSW Energy, a unit of the JSW Group, plans to dilute less than 20 percent of its capital in an issue that could raise 30-40 billion rupees, the source said. The company planned to file initial documents with the market regulator in a couple of weeks. JM Financial, Kotak Mahindra Capital and SBI Capital Markets are among the issue managers.
Reliance Power IPO To List In Early Feb
Emotions, high energy and a hard sell all intact as Anil Ambani hits the press once again and the marathon runner is in an all talk mode about the country's largest public offering (IPO). Reliance Power Ltd, the Anil Dhirubhai Ambani Group (ADAG) firm, is set to hit the capital market by early next month, raising close to $3 billion in the country's largest IPO. So if you are confident to invest your money in shares of a company which is yet to be put up or make money but have his brand ADAG then Reliance Power could be your big bet. For the first time, you will get a 5 per cent discount on an IPO from a power company.
Thursday, January 3, 2008
Reliance Power IPO Ready For Listing
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.
Wednesday, January 2, 2008
Realty Firms Raise Maximum Through Ipos In 2007
NEW DELHI: Real estate companies mopped up the most amount through initial public offers on stock exchanges during 2007, industry body Assocham said on Tuesday.
“Despite high interest rates, the real estate sector remained buoyant during 2007 primarily because of the strong underlying demand, aggressive marketing, entry of new players and upsurge in retail and multiplexes.
This is reflected by the highest share occupied by the sector in IPO market during the year,” chamber president Venugopal Dhoot said.
Property developers mobilised as much as 42.7% of the total funds through IPOs, Assocham said in a statement. Of the Rs 34,119 crore raised in the primary market from January 1, 2007 till mid-December, Rs 14,591 crore was raised by reality firms.
“Despite high interest rates, the real estate sector remained buoyant during 2007 primarily because of the strong underlying demand, aggressive marketing, entry of new players and upsurge in retail and multiplexes.
This is reflected by the highest share occupied by the sector in IPO market during the year,” chamber president Venugopal Dhoot said.
Property developers mobilised as much as 42.7% of the total funds through IPOs, Assocham said in a statement. Of the Rs 34,119 crore raised in the primary market from January 1, 2007 till mid-December, Rs 14,591 crore was raised by reality firms.
Tuesday, January 1, 2008
SEBI Allowed Retail Investors To Get IPO Sop
MUMBAI: A little over a month back, the Securities and Exchange Board of India (SEBI) allowed companies to offer discounts to retail investors during an initial offering of shares. The results are already showing.
According to sources, Reliance Power will be the first to offer such a discount to retail investors when the issue opens for subscription later this month. The IPO is estimated to raise about $3 billion, making it the biggest-ever in India.
Sources close to the development say that the company will be offering a discount of 5-6% to all retail investors applying for the IPO. The issue is expected to hit the market in mid-January and the shares will be listed in the first week of March.
It is believed that the price will be set in the Rs 400-450 range. The face value will be Rs 10 per share. In a circular dated November 29, 2007, SEBI had allowed for a maximum discount of 10% to retail investors.
While companies have offered discounts to retail investors during fresh issuance of shares, this will be the first time it happens in an IPO. Last year, ICICI Bank offered a discount to retail investors when it came out with a follow-on public offering (FPO).
The Reliance Power IPO got the regulatory nod just last week when SEBI disposed off a complaint against the issue. The regulator ruled that the entire promoter quota of 20% shall be locked in for a period of five years from the date of allotment.
The ruling came after an organisation filed a case alleging breach of corporate governance. The complainant said that Reliance Energy shareholders would be adversely affected by the IPO as several major projects had been transferred to Reliance Power from Reliance Energy, an ADAG company that owns 50% of Reliance Power.
However, SEBI ruled that it had no jurisdiction to decide or take action on allegations that the IPO would affect the interests of Reliance Energy shareholders.
The IPO of Reliance Power, in accordance with Rule 19(2)(b) of the Securities Contract (Regulation) Rules, 1957, will offer 60% of the issue to institutional investors. The non-institutional investors and retail segments will be pegged at 10% and 30% respectively.
The issue is managed by a clutch of investment banks including JP Morgan, JM Financial, Kotak, UBS, Deutsche, Enam, ICICI Securities and Macquarie, among others.
According to the draft prospectus, Reliance Power is currently developing 12 medium and large-sized power projects with a combined planned installed capacity of 24,200 MW, which is one of the largest portfolios of power generation assets under development in India.
According to sources, Reliance Power will be the first to offer such a discount to retail investors when the issue opens for subscription later this month. The IPO is estimated to raise about $3 billion, making it the biggest-ever in India.
Sources close to the development say that the company will be offering a discount of 5-6% to all retail investors applying for the IPO. The issue is expected to hit the market in mid-January and the shares will be listed in the first week of March.
It is believed that the price will be set in the Rs 400-450 range. The face value will be Rs 10 per share. In a circular dated November 29, 2007, SEBI had allowed for a maximum discount of 10% to retail investors.
While companies have offered discounts to retail investors during fresh issuance of shares, this will be the first time it happens in an IPO. Last year, ICICI Bank offered a discount to retail investors when it came out with a follow-on public offering (FPO).
The Reliance Power IPO got the regulatory nod just last week when SEBI disposed off a complaint against the issue. The regulator ruled that the entire promoter quota of 20% shall be locked in for a period of five years from the date of allotment.
The ruling came after an organisation filed a case alleging breach of corporate governance. The complainant said that Reliance Energy shareholders would be adversely affected by the IPO as several major projects had been transferred to Reliance Power from Reliance Energy, an ADAG company that owns 50% of Reliance Power.
However, SEBI ruled that it had no jurisdiction to decide or take action on allegations that the IPO would affect the interests of Reliance Energy shareholders.
The IPO of Reliance Power, in accordance with Rule 19(2)(b) of the Securities Contract (Regulation) Rules, 1957, will offer 60% of the issue to institutional investors. The non-institutional investors and retail segments will be pegged at 10% and 30% respectively.
The issue is managed by a clutch of investment banks including JP Morgan, JM Financial, Kotak, UBS, Deutsche, Enam, ICICI Securities and Macquarie, among others.
According to the draft prospectus, Reliance Power is currently developing 12 medium and large-sized power projects with a combined planned installed capacity of 24,200 MW, which is one of the largest portfolios of power generation assets under development in India.
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