Reliance has informed that Reliance Power will soon go public with an issue of shares worth Rs 14000 crore. Reliance Power is a subsidiary of Anil Ambani led Reliance Energy. The issue will be biggest ever Initial Public offer by an Indian company.

Reliance Energy has informed that the application in this regard will be filed soon with IPO regulator. The lead managers to the issue might be Kotak Mahindra Capital, HSBC, JP Morgan and JM Financial Limited. The money raised by the issue will be used for upcoming power projects of the company.

The company has plans to increase its power generation capacity by 25K MW in next two years. The demand of electricity is rising and the margins are also increasing. The company plans to offer up to 15 percent stake in Reliance Power with proposed public offer. As per reports of investment bankers, the current valuation of the company is around 100K crore.

Reliance stocks have seen a decent gain in valuations in past two months in stock markets. All the group companies have shown a great performance and the stock market has rewarded the share holders with decent gains.

Reliance hopes to gain from rising electricity demand in the booming economy that already faces an acute power shortage.

In an official statement, the company spokesperson said, “The proposed IPO is being undertaken to fund the development of the upcoming power projects. We are investing Rs 25,000 crore in a gas-based 7,000 MW plant in Dadri, but since coal-based plants are costlier to set up, we are planning to invest Rs 20,000 crore for the 4,000 MW plant in Sasan.”