Reliance Energy plans US$3.5b IPO
Sunday, September 30, 2007
INDIA'S Reliance Power Ltd is planning an initial public offering (IPO) to raise as much as US$3.5 billion ($5.2 billion), which would be the country's biggest ever IPO, reports said yesterday.
The IPO would be to raise money to develop mega power projects, India's Mint business paper and The Economic Times said.
Reliance Power, a unit of the Bombay Stock Exchange-listed Reliance Energy Ltd, was expected to file the prospectus with market authorities next week, Mint reported, quoting two people close to the plan.
Reliance Energy, led by billionaire businessman Anil Ambani, declined to comment on what the company called "market speculation", the newspapers said.
Reliance Power, part of the Reliance-Anil Dhirubhai Ambani Group or R-ADAG, has been valued at around US$11 billion.
Reliance Power aims to sell shares equivalent to a 15-30 per cent stake in the company, the reports said. The share sale is part of a plan to restructure Reliance Energy into three distinct businesses in power, real estate and infrastructure, Mint quoted an unnamed R-ADAG official as saying.
Each of these businesses could be listed at a later date, the executive said.
Reliance Power won rights to develop a 4,000-MW mega power project at Sasan in the central state of Madhya Pradesh in June.AFP
The IPO would be to raise money to develop mega power projects, India's Mint business paper and The Economic Times said.
Reliance Power, a unit of the Bombay Stock Exchange-listed Reliance Energy Ltd, was expected to file the prospectus with market authorities next week, Mint reported, quoting two people close to the plan.
Reliance Energy, led by billionaire businessman Anil Ambani, declined to comment on what the company called "market speculation", the newspapers said.
Reliance Power, part of the Reliance-Anil Dhirubhai Ambani Group or R-ADAG, has been valued at around US$11 billion.
Reliance Power aims to sell shares equivalent to a 15-30 per cent stake in the company, the reports said. The share sale is part of a plan to restructure Reliance Energy into three distinct businesses in power, real estate and infrastructure, Mint quoted an unnamed R-ADAG official as saying.
Each of these businesses could be listed at a later date, the executive said.
Reliance Power won rights to develop a 4,000-MW mega power project at Sasan in the central state of Madhya Pradesh in June.AFP
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