R-Power IPO overbooked 72.7 times

R-Power IPO overbooked 72.7 times
RPL IPO subscribed 69 times

The Anil Ambani-owned Reliance Power created history on Friday when the company’s initial public offering (IPO) attracted cumulative bids worth, hold your breath, Rs 7,52,000 crore (around $180 billion). This is the highest-ever demand generated by any IPO so far in the country. The amount is equivalent to the aggregate market capitalisation of companies listed in Portugal and the Czech Republic markets taken together, according to Bloomberg.

According to bidding statistics available with the National Stock Exchange till 7 pm, investors bid for over 1,658 crore shares on on NSE and BSE, resulting in an oversubscription of 72.7 times. The QIB (qualified institutional buyers) portion was oversubscribed 70-80 times, while high net worth investors (HNIs) bid for shares over 200 times the size reserved for them.

The retail portion was subscribed 14-15 times, according to sources. Several banks subscribed to the offer. Public sector banks like Punjab National Bank, State Bank of India, Bank of India and Indian Overseas Bank put in bids worth Rs 1,500-2,000 crore, said the sources. Nearly 50 lakh applications were received in response to the mega offer.

The strong flow of applications continued unabated despite extremely bearish market on Friday. The index, in fact, has crashed nearly 2,000 points in the past four days on account of factors like weak global cues and diversion of liquidity to major IPOs like Reliance Power and Future Capital. R-Power had offered a total of 22.8 crore shares to the public through 100% book-building. The Rs 11,700-crore offer was fully subscribed in just a few minutes after it opened for subscription on Tuesday. The shares were offered in a price band of Rs 405-Rs 450.

Retail investors were, however, offered a discount of Rs 20 per share. R-Power is developing and building power projects locally and overseas. The company on its own and through subsidiaries is currently developing 13 medium- and large-sized power projects with a combined planned installed capacity of 28,200 mw.

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