Reliance Power Ltd., a company promoted by Reliance Energy and the Anil Dhirubhai Ambani Group has announced that it had registered a draft prospectus with SEBI for an IPO of 1.3 billion shares.

RPL didn’t spell out an amount it projects to lift from the issue, but merchant bankers had believed Reliance Power intended to raise between $2 billion to $3 billion that would be amongst the largest issues in India. The country’s largest realty developer, DLF Ltd had made the largest issue by number of properties that brought up $2.25 billion.

The shares, the face value for which is Rs 2, or around five cents, each, will make initial entry on the Bombay Stock Exchange and the National Stock Exchange.

In an announcement to the two stock exchanges, Reliance Power said that the initiators of Reliance Power will add 160 million shares to the whole issue, dropping the net issue to the public to 1.14 billion shares.

Market analysts said the creators will subscribe to those 160 million shares at the issue price that will be determined through book building.

The IPO will make up 11.5% of the company’s post issue, paid-up capital, whereas the net issue will include 10.2%. At least 60% of the net issue will be set aside for skilled institutional bidders, of which 5% will be reserved for mutual funds.