The Hindu Business Line : Reliance Energy jumps on subsidiary IPO talk

Mumbai, Sept. 28 Talk in the market that Reliance Power is considering a public offer of shares sent the share price of Reliance Energy soaring. The company’s stock was the top Sensex gainer on Friday. It rose by Rs 88.25 over the day, or by 7.9 per cent, to close at Rs 1,205.50. Reliance Power is the subsidiary of Reliance Energy.

The Anil Ambani group company has been among the high profile gainers in the current market rally, as well as a top blue chip gainer through the year as a whole.

A spokesperson for the company refused to comment on whether a public offer of shares from the company was in the pipeline.REL, having won the 4,000 MW ultra mega power project at Sasan, is likely to raise funds for the project, said sources close to the project.

It is likely that the funds will be raised through Reliance Power, its subsidiary that has bid for and will establish the Sasan power project.

Wire agencies, quoting unnamed banking officials, reported that Reliance Energy plans to sell shares and have short-listed a few banks for arranging the sale.

The India power story and the general sentiment in the stock markets make the going good for power companies currently, said an analyst with a stock broking firm.

Public sector PowerGrid Corporation’s IPO which met with a huge success recently, was a case in point. It was subscribed nearly 65 times.

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