Reliance Power IPO lights up rural Maharashtra

It was not only investors from big cities who were in a frenzy over Reliance Power's initial public offer -- those from the hinterland in Maharashtra also queued up to get a slice in the mega IPO of the Anil Ambani Group company that closed on Friday.

The Western Vidarbha region comprising three districts of Akola, Washim and Buldana recorded bids of over Rs 50 crore (Rs 500 million) in the IPO that had opened on January 15, according to banking and private money market sources.

People from all walks of life, including the low income group, have invested money in the offer. A large number of people opened D-MAT accounts in banks, including the cooperative urban banks, for investing money in the IPO, which was subscribed 73 times.

Reliance Power has received bids for shares worth over Rs 7.5 lakh crore, in which more than half of the demand came from foreign institutional investors. The portion reserved for FIIs received bids for shares worth over Rs 4,00,000 crore (Rs 4000 billion).

Overall, the issue has been subscribed over 73 times with bids coming in for 1,665 crore shares (16.65 billion) as against the 22.8 crore (228 million) shares on offer. The shares were offered at a price band of Rs 405-450 each.

The investor rush was more in urban co-op banks because they were charging lower commission on demand drafts as compared to nationalised lenders.

Farmers in West Vidarbha, popularly known as the cotton belt of the state, are also said to have put money in the IPO.

The IPO, billed as the biggest ever with total proceeds of up to Rs 11,700 crore (Rs 117 billion), has already created a number of records, including those in terms of demand and number of applications.

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