Mumbai, Jan 15: The Reliance Power Initial Public Offer (IPO) today opened with enthusiasm and the issue was oversubscribed 9.1 times.

The three-billion IPO was oversubscribed within hours of opening of its book building process. The company has come out with an IPO in the price band of 405-450 per share. The issue opened today and will close January 18.

The company would raise 10, 530 crore rupees at the lower end of the price band, while it would garner 11,700 crore rupees at the higher end. The IPO income will be used to part-finance 13 medium to large sized power projects.

According to the available data, the IPO received bids worth over 40,000 crore rupees in the first five minutes of the book-building process.

The company has reserved over 30 per cent of this issue for retail investors with two payment options.

Retail investors have been also offered a discount of 20 rupees per share, which implies their net cost of subscription will be 430 rupees per share, if they choose to bid at the upper end of the price band.

Reliance Power has planned power units with capacity of 28,200 Mega Watt (MW). The company has one of the largest portfolios of power generation assets under development in the country.

Kotak Mahindra Capital, UBS Securities India, ABN AMRO Securities, Deutsche Equities India, Enam Securities, ICICI Securities, JM Financial Consultants and JP Morgan India are the book running lead managers to the issue, while Macquarie India and SBI Capital Markets are co-book running lead managers.

Reliance Energy, part owner of Reliance Power would hold 45 per cent stake in the company post-issue. (ANI)