A PROJECT REPORT ON RELIANCE POWER IPOSUBMITTED TO:-SATYENDRA SINGH SUBMITTED BY:- ABHIMANYU SINGH JIML-11-FS-001
RELIANCE POWER LTD.Reliance Power Limited a part of the Reliance Anil Dhirubhai ambani group, wasestablished to develop, construct and operate power projects in the domestic andinternational markets. Reliance Energy Limited, an Indian private sector power utilitycompany along with the Anil Dhirubhai Ambani Group promotes Reliance Power.Along with its subsidiaries, it is presently developing 13 medium and large-sizedpower projects with a combined planned installed capacity of 33,480 MW.The company was incorporated in January 1995 as Bawana Power Private Limitedand changed its name to Reliance Delhi Power Private Limited in February 1995.Later, it changed its name to Reliance EGen Private Limited in January 2004, toReliance Energy Generation Limited in March 2004, and to Reliance Power Limitedin July 2007.The company website identifies project sites broadly to be located in western India(12,220 MW), northern India (9,080 MW) and northeastern India (4,220 MW)and southern India (4,000 MW). They include six coal-fired projects (14,620 MW) tobe fueled by reserves from captive mines and supplies from India and abroad,two gas-fired projects (10,280 MW) to be fueled primarily by reserves fromthe Krishna Godavari basin (the "KG Basin") off the east coast of India, andfour hydroelectric projects (3,300 MW), three of them in Arunachal Pradesh and onein UttarakhandWHY RELIANCE POWER REALESED IPO:-Dhirubhai Ambani (ADA) Group company is in the business of developing,constructing and operating power projects. The Reliance ADA group is one of thebiggest business group in India involve in business like telecommunications(Reliance Communications), financial services (Reliance Capital), media andentertainment (Adlabs Films), infrastructure, energy (Reliance Energy REL, Reliancenatural resources RNRL, Reliance Energy Transmission and Reliance EnergyTrading) and other sectors.Reliance Power Limited is currently developing 13 medium and large sized powerprojects with a combined planned installed capacity of 28,200 MW across variousgeographic locations in India. First project of Reliance Power is expected to goonstream in 2009. Company intend to sell the power generated by these projectsunder a combination of long-term and short-term PPAs to state-owned and privatedistribution companies and industrial consumers.
The objects of the Issue are to achieve the benefits of listing on the StockExchanges & to raise capital to1. Fund subsidiaries to part-finance the construction and development costs ofcertain of 12 power generation projects currently under various stages ofdevelopment;2. General corporate purposes;3. Achieve the benefits of listing on the Stock Exchanges.DETAILS OF IPO:-Reliance Power IPO oversubscribed 73 times BANK RUNNING LEAD MANAGER:- BRLM Kotak Mahindra Capital Company Limited UBS Securities India Private Limited ABN AMRO Securities (India) Private Limited Deutsche Equities India Private Limited Enam Securities Private Limited ICICI Securities Limited JM Financial Consultants Private Limited J P Morgan India Private Limited CO BRLM Macquarie India Advisory Services SBI Capital Markets Limited ISSUE PRICE:- Rs 450 PRICE BAND:-Rs 405 to Rs450 ISSUE SIZE(LAKH SHARES):- Public issue of 2280 FACE VALUE:-Rs10 LISTED AT:- BSE,NSE DATE OF LISTING:- 11.02.2008 DATE OF ISSUE:- 15.01.2008 TO 18.01.2008 IPO RATING :- Reliance Power Limited IPO has been graded by CRISIL Limited as CRISIL IPO GRADE 4/5, indicating that the fundamentals of the issue are above
average, in relation to other listed equity securities in India and by ICRA Limited as ICRA IPO Grade 4, indicating above average fundamentals. IPO PERMORANCEOPEN PRICE:-RS 89.80CLOSE PRICE:-RS 89.75VWAP:- Rs 90.4352 WEEK HIGH:- 176.2552 WEEK LOW:- 75.10FACE VALUE:- Rs 10TRADED VOLUME(SHARES):- 18,33,128TRADED VALUE IN LAKHS:- 1657.70This ipo has not performed well as the the current price of shares is to less than theissue price.The investors are not satisfied by their permomance.Reliance power hasnot cheer their investors. As it was oversubscribed 73 times the expectation of themembers was too high but today the scenario is totally different.The current price isRs 89.75.