Reliance Power released an IPO to raise capital to fund the construction of power generation projects being developed by its subsidiaries. The IPO was for 22.8 lakh shares at a price band of Rs. 405-450 per share and was oversubscribed 73 times. However, the stock underperformed and is currently trading well below the issue price, disappointing investors despite high oversubscription. The funds raised were intended to part-finance the development of 12 power projects with a planned capacity of 28,200 MW across India.

1. A
PROJECT
REPORT
ON
RELIANCE POWER IPO
SUBMITTED TO:-
SATYENDRA SINGH SUBMITTED BY:-
ABHIMANYU SINGH
JIML-11-FS-001

2. RELIANCE POWER LTD.
Reliance Power Limited a part of the Reliance Anil Dhirubhai ambani group, was
established to develop, construct and operate power projects in the domestic and
international markets. Reliance Energy Limited, an Indian private sector power utility
company along with the Anil Dhirubhai Ambani Group promotes Reliance Power.
Along with its subsidiaries, it is presently developing 13 medium and large-sized
power projects with a combined planned installed capacity of 33,480 MW.
The company was incorporated in January 1995 as Bawana Power Private Limited
and 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, to
Reliance Energy Generation Limited in March 2004, and to Reliance Power Limited
in July 2007.[2]
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) to
be 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 from
the Krishna Godavari basin (the "KG Basin") off the east coast of India, and
four hydroelectric projects (3,300 MW), three of them in Arunachal Pradesh and one
in Uttarakhand
WHY 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 the
biggest business group in India involve in business like telecommunications
(Reliance Communications), financial services (Reliance Capital), media and
entertainment (Adlabs Films), infrastructure, energy (Reliance Energy REL, Reliance
natural resources RNRL, Reliance Energy Transmission and Reliance Energy
Trading) and other sectors.
Reliance Power Limited is currently developing 13 medium and large sized power
projects with a combined planned installed capacity of 28,200 MW across various
geographic locations in India. First project of Reliance Power is expected to go
onstream in 2009. Company intend to sell the power generated by these projects
under a combination of long-term and short-term PPAs to state-owned and private
distribution companies and industrial consumers.

3. The objects of the Issue are to achieve the benefits of listing on the Stock
Exchanges & to raise capital to
1. Fund subsidiaries to part-finance the construction and development costs of
certain of 12 power generation projects currently under various stages of
development;
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

4. average, in relation to other listed equity securities in India and by ICRA
Limited as ICRA IPO Grade 4, indicating above average fundamentals.
IPO PERMORANCE
OPEN PRICE:-RS 89.80
CLOSE PRICE:-RS 89.75
VWAP:- Rs 90.43
52 WEEK HIGH:- 176.25
52 WEEK LOW:- 75.10
FACE VALUE:- Rs 10
TRADED VOLUME(SHARES):- 18,33,128
TRADED VALUE IN LAKHS:- 1657.70
This ipo has not performed well as the the current price of shares is to less than the
issue price.The investors are not satisfied by their permomance.Reliance power has
not cheer their investors. As it was oversubscribed 73 times the expectation of the
members was too high but today the scenario is totally different.The current price is
Rs 89.75.