Rel Power allots shares, bids below 225 shares get none

Mumbai: Reliance Power on Friday announced it had allotted shares to 4.2 million investors, but over 450,000 retail investors who bid for less than 225 shares got none.

Following its record breaking initial public offer (IPO), Reliance Power, part of Reliance Anil Dhirubhai Ambani Group, completed the allotment of shares across the country and overseas.

Over 4.17 million successful bidders in the retail category will get around 15 shares each, based on the criteria followed by the company.

The company also commenced refunding excess application money Friday. The refunds to qualified institutional buyers (QIBs) and non-institutional investors (NIIs) were credited electronically.

Post allotment, Reliance Power now has approximately 4.2 million shareholders. The equity shares offered through this IPO will be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) shortly.

According to a Reliance Power announcement, the allotment and refund exercise post closure of the IPO has been carried out in a record time of 10 working days, considering it was by far the largest in the history of Indian capital market.

The Reliance Power IPO attracted over five million bids from all categories of domestic and international investors with aggregate commitment of over Rs.750 billion as against the issue size of Rs.115.6 billion.

The 60 percent of the issue reserved for QIBs was oversubscribed 82.5 times. Five percent of this category has been allotted on a proportionate basis to mutual funds.

An aggregate of 446 domestic and international QIBs will receive only 1.2 percent of their applied quantity of shares.

Ten percent of the issue reserved for NIIs was oversubscribed 159.6 times. About 12,000 NIIs will receive only 0.6 percent of their applied quantity of shares.

Thirty percent of the issue reserved for retail investors was oversubscribed 13.6 times. They have been issued shares at a discount of Rs.20 at Rs.430 per Share.

The excess application money of approximately Rs.1 trillion received from the investors is being refunded.

Reliance Power Ltd will develop, construct and operate power generation projects. The company is developing 12 power projects with a combined planned installed capacity of 28,000 MW, one of the largest portfolios of power generation assets under development.