RELIANCE POWER LIMITED

INITIAL PUBLIC OFFERING

COMPANYS PROFILE
Reliance Power Limited is a part of the Reliance Group, one of Indias largest business houses. The company operates under the leadership of Anil Ambani. Reliance Power has been established to develop, construct and operate power projects both in India as well as internationally. The Company has a portfolio of over 35,000 MW of power generation capacity, both in operation as well as capacity under development. Reliance Power has won three of the four Ultra Mega Power Projects(UMPPs) awarded by the Indian Government so far. These include UMPPs in Sasan( Madhya Pradesh),Krishnapatnam( Andhra Pradesh) & Tilaiya(Jharkhand). Reliance Power is also developing coal bed methane (CBM) blocks to fuel gas based power generation

INDUSTRY PROFILE
India is the 5th largest power producer in the world with the total power capacity of more than 145,000MW. Despite this fact India is facing acute power shortage due to its rapid growing economy and population. Distribution of power is primarily controlled by various state electricity boards. Present government policies are aimed at encouraging private sector investment in this sector following publicprivate partnership model and increasing the competition. .Government also encouraging investment in renewable sources of energy like solar energy, wind energy as well as nuclear energy.

MERCHANT BANKERS INVOLVED IN RELIANCE POWER IPO

Kotak Mahindra ICICI Securities JM Financial Enam Financial UBS Deutsche Equities India Private Limited ABN AMRO Securities (India) Private Limited J.P. Morgan India Private Limited

STRATEGIES ADOPTED BY RELIANCE POWER

Capitalizing on the Growth of the Indian Power Generation Sector> Indian power generation sector is a high growth sector due to rapid growth of Indian economy and population. In order to tap this market reliance power came up with ipo to fund their power generation projects. Effective advertisements using brand name Reliance-> Reliance Power Limited used effective advertisements strategies like print ads , banners ,television etc to attract investors. Issuing bonus shares->Reliance power closed 21 percent down during the listing day , it closed at 373.5 in the BSE comparing to 430 for the retailers .In order to compensate the losses faced by their investors they issued bonus shares in the ratio of 3:5 .

PRICING AND SUBSCRIPTION

Reliance Power, a subsidiary of Reliance Energy, floated Indias largest public issue of Rs 11,700 by selling Rs 10 face value shares in the range of Rs 415 to Rs 450. Reliance Power debuted on the stock markets on February 11, 2008 with a listing price of 430 Rs. The share got oversubscribed by staggering 10.55 times in the opening day only. After the listing the share price fell down by 17 percent to 356.9 Rs creating huge losses to investors. In order to compensate for their investors losses they issued bonus shares in the ratio of 3:5.