Anil's IPO gets better first-day response than Mukesh's

MUMBAI: Anil Ambani-led Reliance Power on Tuesday dwarfed Reliance Petroleum, headed by elder brother Mukesh, in terms of first-day response to their initial public offers as it generated nearly five times higher demand on the bourses.

After making a sort of history by getting fully subscribed within a minute of commencement of bidding for shares on the offer, Reliance Power IPO ended its first day with an over-subscription of 10.52 times. In comparison, the initial public offer of Reliance Petroleum was subscribed 7.5 times on the first day of IPO on April 13, 2005.

The first-day total demand for Reliance Petroleum shares was worth about Rs 20,500 crore, while Reliance Power today generated demand of shares worth about Rs 1,08,000 crore with almost all the bids coming in at the top end of the Rs 405-450 per share price band.

Reliance Petroleum IPO was subscribed 52 times at the end of the bidding process with total demand worth about Rs 1,43,500 crore (32 billion dollars). The IPO had raised close to Rs 2,700 crore, while Anil Ambani group is looking to raise upto Rs 11,700 crore from the country's biggest IPO.

The refining firm had sold 45 crore shares in its IPO at a price of Rs 60 per share, while the power company is offering 22.8 crore shares at a premium to the public.

Reliance Power will get a market capitalisation of more than Rs 1,00,000 crore even if it lists at Rs 405, the lower end of the price band. Currently, Reliance Petroleum has a market capitalisation of Rs 98,865 crore.