Reliance Power IPO makes a big start

The wait is over. The US$3 billion Reliance Power IPO made a huge beginning on Tuesday. The issue was oversubsribed 6.7 times at Rs 450 per share. It is the biggest IPO (Initial Public Offer) in the country. Over 228 million shares of the Anil Dhirubhai Ambani Group company are on offer.

Reliance is planning to sell IPOs worth Rs 11,700 crore over the next three days. The offering will be closed on January 18, 2008. According to latest reports, there is a huge rush to buy Reliance Power IPO and it received bids worth over Rs 40,000 crore in the first five minutes of the book-building process.

Over 30 percent of this issue is reserved for retail investors. They will have two payment options. They can pay in staggered installments or make a full payment upfront. Retail investors have been offered a discount of Rs 20 per share. Under the part payment option, they can put in only Rs 115 per share upon application. The balance will be paid in partly shares.