- Reliance Power
Infobox_Company
company_name = Reliance Power Limited
company_
company_type =Public company
foundation = 2007
location =Navi Mumbai ,India
key_people =Anil Ambani , Founder and Chairman
industry =Electricity generation
revenue =
num_employees =
homepage = http://www.reliancepower.co.inReliance Power Limited, a part of the Reliance
Anil Dhirubhai Ambani Group , was established to develop, construct and operate power projects in the domestic and international markets.Reliance Energy Limited, an Indian private sector power utility company along with the Anil Dhirubhai Ambani Group promotes Reliance Power.Along with its subsidiaries, it is presently developing 13 medium and large-sized power projects with a combined planned installed capacity of 28,200 MW.
About the company
The company was incorporated in January 1995 as Bawana Power Private Limited and changed its name to Reliance Delhi Power Private Limited in February 1995. Later, it changed its name to Reliance EGen Private Limited in January 2004, to Reliance Energy Generation Limited in March 2004, and to
Reliance Power Limited in July 2007.cite news|accessdate=2008-01-16|url=http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=36011856|title=Reliance Power Limited: Private Company Information|work= [http://www.businessweek.com Business Week] ]The company website identifies project sites broadly to be 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 inUttarakhand .Initial public offering and controversies
On
January 15 ,2008 , the company attracted $27.5 billion of bids on the first day of itsinitial public offering (IPO), equivalent to 10.5 times the stock on offer, thereby, creatingIndia 's IPO record. The upper cut off price for the bid was Rs. 450 cite news|accessdate=2008-01-15|url=http://www.bloomberg.com/apps/news?pid=20601091&sid=aKNhjpoMWGj8&refer=india|title=Reliance Power Record IPO Gets $27.5 Billion of Bids|date=2008-01-15 |work= [http://www.bloomberg.com Bloomberg] |last=M.C. Govardhana Rangan|first=Archana Chaudhary] The proposed IPO was to fund the development of its six power projects across the country whose completion dates are scheduled from December 2009 to March 2014.cite news|accessdate=2008-01-16|url=http://www.thehindubusinessline.com/2008/01/05/stories/2008010552360100.htm|title= Reliance Power set to raise over Rs 10,000 cr via IPO|date=2008-01-05 |work= [http://www.thehindubusinessline.com The Hindu Business Line] |last=Noronha|first=Paul]A media report suggested that, if the company’s stock price were to cross Rs. 650-700, Anil Ambani would go past L. N. Mittal to become the richest Indian.cite news|accessdate=2008-01-16|url=http://economictimes.indiatimes.com/News/News_By_Industry/Energy/Power/My_father_would_have_been_a_happy_man_Anil_Ambani_on_REPL_IPO/articleshow/2703375.cms|title=father would have been a happy man: Anil Ambani on REPL IPO|date=
2008-01-16 |work= [http://economictimes.indiatimes.com The Economic Times] |last=Times News Network|first=] "It is a reflection of world community in the future of India... Investors seem to be confident in the future of Indian economy," Indian Finance Minister,P. Chidambaram told the media about the IPO.cite news|accessdate=2008-01-16|url=http://www.rediff.com/money/2008/jan/15rpl.htm|title=Reliance Power IPO subscribed 10 times in 4 hrs|date=2008-01-15 |work= [http://www.thehindubusinessline.com The Hindu Business Line] |last=Press Trust of India|first=]The
Securities and Exchange Board of India , which is an organization that regulates the activity in theIndian stock market , placed some restrictions based on a complaint about the formulation of the IPO.cite news|accessdate=2008-01-15|url=http://www.hindustantimes.com/StoryPage/StoryPage.aspx?id=392927ca-da53-48c8-a772-e6c7edc0dce2&&Headline=SEBI+puts+curbs+on+Reliance+Power+offer|title=SEBI puts curbs on Reliance Power offer|date=2007-12-28 |work= [http://www.hindustantimes.com Hindustan Times] |last=Layak|first=Suman] The complaint also resulted in apublic interest litigation being filed against the company. However, theSupreme Court of India passed a ruling that the IPO would go ahead even if any order is passed by any Indian court against the venture.cite news|accessdate=2008-01-15|url=http://www.indianexpress.com/story/260624.html|title=Reliance Power can go ahead with IPO: Supreme Court|date=2008-01-12 |work= [http://www.indianexpress.com Indian Express] |last=ENS Economic Bureau]Reliance Power debuted on the stock markets on February 11, 2008. However, the markets were still reeling after the
January 2008 stock market volatility , and concerns over speculation that the issue was overpriced sent the stock plummeting soon after its listing. At the end of the day, the stock traded at a value that was 17 per cent lower than its issue price of Rs. 450 .[ [http://www.thehindu.com/2008/02/18/stories/2008021851231500.htm Hard lessons from the primary market fiasco financial scene - The Hindu] ] . Investors who were betting on the stock reaching 1.5 or even twice its issue price lost a fortune in the process. On February 25, in an effort to mitigate investor losses, Reliance Power decided to issue 3 bonus shares for every 5 shares held [ [http://www.dnaindia.com/report.asp?newsid=1152793 Reliance Power offers 3:5 bonus, share cost now Rs. 269 - DNA India] ] .
References
External links
* [http://www.reliancepower.co.in Official website]
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