Reliance Power fixes IPO price at Rs450; to offer Rs20 discount to retail investors

Mumbai: Reliance Power, which received an enormous response for its initial public offer (IPO) of 228 million shares, has fixed the issue price at Rs450 per share, but said it will offer them to retail investors at a discount of Rs20.

Investors bid for over 16.548 billion shares - nearly 72 times the 228 million shares that Reliance Power offered for subscription under the IPO.

"The company's board has fixed the issue price at top-end at Rs450 per share for the Reliance Power issue and for retail investors at Rs430 per share," Anil Ambani, chairman, Reliance Power, said.

The IPO, the largest ever in the country, which closed on January 18, received record subscription of Rs7,50,000 crore ($190 billion) - the largest ever subscription in IPO history anywhere.

Following the IPO, the market cap of the Anil Dhirubhai Ambani Group (ADAG) would go up to nearly $100 billion, making it the second largest corporate house in the country, Anil Ambani said.

The IPO saw a record Rs1,15,000 crore ($29 billion) of capital being deposited in the banking system as application money.

The IPO received maximum response on the last day, with the subscription count reaching 72 times overnight from 24 times the previous night.