Reliance Power- India's Energy -Super Subscribed !

Reliance Power Limited is part of the Reliance Anil Dhirubhai Ambani Group and is established to develop, construct and operate power projects domestically and internationally. The Company on its own and through subsidiaries is currently developing 13 medium and large sized power projects with a combined planned installed capacity of 28,200 MW, one of the largest portfolios of power generation assets under development in India. Our 13 power projects are planned to be diverse in geographic location, fuel type, fuel source and off-take, and each project is planned to be strategically located near an available fuel supply or load center. The identified project sites are located in western India (12,220 MW), northern India (9,080 MW) and northeastern India (2,900 MW) and southern India (4,000 MW). They include six coal-fired projects (14,620 MW) to be fueled by reserves from captive mines and supplies from India and abroad, two gas-fired projects (10,280 MW) to be fueled primarily by reserves from the Krishna Godavari Basin (the "KG Basin") off the east coast of India, and four hydroelectric projects (3,300 MW), three of them in Arunachal Pradesh and one in Uttarakhand. Reliance Power has acquired the two ultra mega power projects of 4,000 MW each at Sasan in Madhya Pradesh and Krishnapatnam in Andhra Pradesh. The 7,480 MW project to be located at Dadri in Uttar Pradesh is expected to be the largest gas-fired power project at a single location in the world. We intend to sell the power generated by these projects under a combination of long-term and short-term PPAs to state-owned and private distribution companies and industrial consumers.

India's largest equity offer by Reliance Power mustered an equally large response with a subscription of 72.57 times over, as investors jostled to beat the Friday deadline despite another major crash on the bourses.

"This is the largest portfolio of power generation within a geographical area or a group anywhere in the world," Ambani had told a press conference earlier. The government envisages an addition of 80,000 MW in the 11th five-year plan (2007-2012).

The company, which is an associate of Reliance Energy, was in November awarded the 4,000-MW Krishnapatnam power project in Andhra Pradesh, with the lowest bid for a tariff of Rs.2.33 per unit among all qualified bidders.

Another major project of the company was the 4,000-MW Sasan power project in Madhya Pradesh, awarded in August.

Projects Currently handled by Reliance Power Limited
• Rosa Phase I, a 600 MW coal-fired project in Uttar Pradesh scheduled to be commissioned in March 2010.
• Rosa Phase II, a 600 MW expansion of Rosa Phase I which is scheduled to be commissioned in September 2010.
• Butibori, a 300 MW coal-fired project scheduled to be commissioned in June 2010.
• Sasan 3,960MW UMPPs promoted and awarded by the Government of India is expected to be the largest pithead coal-fired power project at a single location in India,scheduled to be commissioned by April 2016.
• Shahapur, a 4,000 MW coal-fired(1,200 MW) and combined cycle gas-fired (2,800 MW) project in Shahapur, scheduled to be commissioned in March 2011.
• Urthing Sobla (400 MW), a run-of-the-river hydroelectric project, located on the Daulinganga River in Uttarakhand scheduled to be commissioned in March 2014.
Five other projects—the gas-fired Dadri project (7,480 MW), the coal-fired MP Power project (3,960 MW) and three run-of-the-river hydroelectric projects, Siyom (1,000 MW), Tato II (700 MW) and Kalai II (1,200 MW).

Major Points of the Reliance Power IPO

Reliance Energy which holds major stake in Reliance Power will offload 11.5% stake from Reliance Power Limited. With regard to the listing the company has got principal approval from the Reliance Energy Shareholders.

Face Value Change : In an recent news, the SEBI has not agreed to the DRHP presented by the Reliance Power for its IPO and so the company has to alter some points to meet the SEBI instructions. As per the market news, SEBI has not agreed on the IPO offer price at Rs. 2 and the company is now considering to change the face value of the shares offered to Rs. 10, for this the Reliance Power IPO issue date may be delayed for at least a month according to the sources.

Reliance Power IPO Date : Subscription of the issue is expected to start around the 2nd week of January 2008.Subscription of the Reliance Power IPO will be high as the Retail and the Institutional investors are showing tremendous confidence in this issue, even before the subscription of the Reliance Power IPO started, Grey market premium is quoting around Rs. 60