High salaried people from middle class society in the country have started showing greater interest in share market now and when it comes to the shares of companies like Reliance, it creates euphoria among the investors. Everyone is
waiting for the Anil Ambani group’s Reliance Power Initial Public Offer (IPO) and according to the report the IPO has been subscribed 7.7 times within one hour on Tuesday.

The bids are at the rate of about Rs 450 per share and bids worth of Rs 80000 crore has been received on Tuesday. The public issues have received bids for 1.54 billion shares, however, 26 crore shares are on offer. Some of the qualified institutional investors have subscribed nine times with bids worth of $14 billion.

On Tuesday, the Initial Public Offer of Reliance Power (ADAG group company) has opened in market for subscription. The IPO generated a
demand of over Rs 78,975 crore within one hour of its book building process. According to the report coming from National Stock Exchange, the IPO subscribed over 6.75 times till 11 AM in the first day of its public issue.

The report said that the company has decided to offer 26
crore equity shares within the price band of of Rs 405-450 per share and it is likely to raise about Rs 10530-11700 crore through IPO. The 22.8 crore shares available to public would raise between Rs 9234 – 10260 crore from them. According to the report, the promoters have pumped in Rs 1440 crore on Monday at Rs 450 per share against 3.2 crore shares.

Domestic brokerage firm SMC Global’s vice president Rajesh
Jain to rediff: It has created an unprecedented euphoria in the market. The issue would be good option for retail investors who are looking for short-term gain.

The IPO will be closed for subscription on January 18, 2008.
The Reliance Power generation company has 13 projects and six of which are under development. There are seven coal-based projects (14,620 MW), two gas-based (10,280 MW from KG basin), four hydroelectric projects (3300 MW).