Thursday, January 03, 2008

Reliance Power, Future Capital fix price band for IPOs

NEW DELHI: Retail pioneer Kishore Biyani-led Future Capital Holdings and Anil Ambani group firm Reliance Power Ltd will vie with each other to attract investors' attention as they launch their public offers later this month.

Future Capital Holdings is likely to be the first company to hit the capital markets this year with its initial public offer opening for subscription on January 11. The company expects to raise up to Rs 490 crore, for which it has fixed a price band of Rs 700-765 a share.

The offer will close on January 16 and roadshows would begin on January 7, a company spokesperson said.

Reliance Power Ltd's would hit the market with its IPO on January 15 for raising an estimated three billion dollars in the country's biggest initial public offer. The IPO closes on January 18 and the company has fixed a price band of Rs 405-450 per share, an Anil Ambani Group spokesperson said.

Reliance Power's IPO would be the first one to offer a discount to retail investors, as also an option of staggered payment to all segments. Qualified institutional buyers would be allowed to pay only 10 per cent initially, while high net worth individuals and retail investors would have to pay only 25 per cent of the total cost as initial payment.

The remaining amount would have to be paid after allotment of shares, the spokesperson said.

Future Capital would offer 64.22 lakh equity shares, while Reliance Power would issue 26 crore shares. This would be the biggest IPO in India, surpassing the public issue of realty giant DLF that raised about Rs 9,000 crore last year.

Reliance Power filed the draft prospectus for its IPO in the first week of October 2007 and received the go-ahead from the market regulator SEBI last week on December 28. PTI

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