MUMBAI: An initial public offering by Anil Ambani Group firm Reliance Power has been oversubscribed by about 14 times, with investors demanding shares worth Rs Rs 1,42,000 crore till second day of issue on Wednesday.
The issue has received one million applications, a record, from retail investors in the two days of launch of the IPO on January 15, merchant banking sources said.
According to data available on the National Stock Exchange, the IPO got subscribed 13.85 times at the end of working hours on the second day of the issue. It received bids for over 315.87 crore shares as against 22.80 crore shares on offer. The issue would close on January 18.
"Looking at the rush of investors for the issue, time for accepting the applications has been increased to 11 PM today," a member involved in the syndicating process for the IPO said.
Investors have pulled out money from the secondary market to subscribe to the mega IPO, which seeks to raise Rs 11,700 crore, leading to the benchmark Sensex falling more than 800 points in the two days to 19,868.11 points today from 20,728.05 points on January 14.
The investors wealth has witnessed a fall of about Rs 2,66,218.56 crore.
"The Reliance Power IPO is attracting a lot of liquidity, but this is not the only reason for the fall in the market. The main reason could be the fact that the global scenario is getting bad," SMC Global Vice President Rajesh Jain said.
The market valuation of all the listed companies on the BSE stood at Rs 69,08,781 crore with the 30-share Sensex alone accounting for about Rs 28,12,000 crore.
The company is offering the equity shares at a price band of Rs 405-450 per share.
The total size of the IPO is 26 crore equity shares, including the promoters contribution of 3.2 crore shares. The net issue to the public constitutes 22.8 crore shares.
Reliance Power has a diversified portfolio of 13 medium and large-sized power projects under development and strategically located at various places across India, according to the company.
