Record demand for Reliance Power IPO

Anil Ambani Group firm Reliance Power's IPO on Thursday generated a record demand, with bids pouring in for shares worth Rs 2,34,000 crore ($ 60 billion) – an amount that is over three times the money ploughed in by FIIs and mutual funds in the stock market in 2007.

Over 2.2 million applications were received for the issue, which has been subscribed 22.84 times till 1700 hrs on Thursday. The issue closes on Friday.

According to the latest data available on the Bombay Stock Exchange, the IPO received bids for 520.73 crore shares as against the 22.8 crore shares on offer on its third day today.

The issue has also received record 22 lakh applications which is more than the previous highest number of 19.5 lakh received for the IPO of Reliance Industries, merchant banking sources said. The portion reserved for retail investors has been subscribed over five times.

The demand for the Reliance Power IPO has surpassed that of Mundra Port and SEZ, which had generated the biggest demand for its initial offer last year receiving bids worth about Rs 2,00,000 crore (Rs 2 trillion) with an over-subscription of 115 times, while the IPO of state-run Power Grid Corporation also generated demand worth about the same level.

The company is offering equity shares at a price band of Rs 405-450 per share. The issue had opened on January 15.

The total size of the IPO is 26 crore equity shares, including the promoters contribution of 3.2 crore shares. The net issue to the public constitutes 22.8 crore shares.