Reliance Energy slips ahead of listing of Reliance Power

Reliance Energy slips ahead of listing of Reliance Power

eliance Energy slipped 2.12% to Rs 1945 at 13:46 IST on BSE ahead the debut of Reliance Power on the stock exchanges on Monday, 11 February 2008.

Meanwhile, the BSE Sensex was down 116.75 points, or 0.67%, to 17410.18.

On BSE, 13.59 lakh shares of the scrip were traded. The stock had an average daily volume of 11.05 lakh shares on BSE in past one quarter.

The scrip had touched a high of Rs 2042.70 and a low of Rs 1859.95 so far during the day. The stock had hit a 52-week high of Rs 2631.70 on 10 January 2008 and a 52-week low of Rs 448.20 on 5 March 2007.

The scrip had underperformed the market in the one month to 6 February 2008, falling 22.54% as against the Sensex's 13.10% decline. It had, however, outperformed the market in the past three months, gaining 8.11% against the Sensex's 4.82% slide.

India's second largest power utility by revenue has an equity capital of Rs 236.53 crore. Face value per share is Rs 10.

At the current price of Rs 1945, the scrip trades at a PE multiple of 38.13, based on Q3 December 2007 annualised EPS of Rs 51.

Reliance Energy (REL) and closely held promoter group company, AAA Projects hold equal 45% stake in Reliance Power.

Reliance Power will be simultaneously listed on the futures & options segments of BSE and NSE. Lot size of Reliance Power on NSE's futures & options segment is set at 450.

Anil Dhirubhai Ambani group firm Reliance Power, whose issue got an aggregate commitment of over Rs 7.50 lakh crore, as against the issue size of Rs 11,560 crore, had priced the IPO at the top end of the price band at Rs 450 per share, valuing the firm at $30 billion.

Reliance Power IPO had ended on 18 January 2008 with 73.04 times subscription. The IPO had mopped up bids for 1665.20 crore shares as against 22.80 crore shares on offer.

With around 42 lakh shareholders, Reliance Power will be the largest shareholder base company among the companies listed on the stock exchanges.

The qualified institutional buyers (QIBs) category was subscribed 82.61 times, the non institutional investors portion was subscribed 190.02 times and the retail portion was subscribed 14.87 times.

Reliance Power is developing 13 power generation projects with a capacity of 28,200 megawatt (MW). These 13 projects are to be executed over the next eight years. All power projects, except one at Dadri in Uttar Pradesh are to be executed through various subsidiaries of the company and are currently under various stages of development.

The company plans to use the IPO proceeds to fund subsidiaries to part-finance the construction and development costs of its projects under development and for general corporate purposes.

Reliance Energy is engaged in generating, transmitting and distributing electricity. It also provides electrical contracting, engineering, procurement and construction contracts and computer services.

Reliance Energy’s net profit rose 50% to Rs 301.60 crore on 1.5% decline in sales to Rs 1505.49 crore in Q3 December 2007 over Q3 December 2006.