Bankers see huge demand for Reliance Power IPO

Even before India’s biggest ever IPO hits the market, investment bankers involved in the public issue by Anil Ambani’s Reliance Power believe it could generate demand worth more than Rs 2,00,000 crore, reports PTI from New Delhi on Sunday.

While the group is proposing to raise up to Rs 11,700 crore from the IPO, the bankers say the success of the issue is a foregone conclusion and they are now betting on highest ever demand to be generated by this issue. Bankers say that the tremendous potential demand could be gauged from the fact that close to one lakh demat accounts were opened in the last three days alone. 

At the end of 2007, there were close to 10 million demat accounts and the figures have remained stagnant for quite some time, until the rush began in the run-up to the Reliance Power IPO, said a banker.

The IPO will open on January 15 and close on January 18 and the bankers expect at least 20 times of over-subscription. Officials of a brokerage firm also said it was running out of demat account opening forms.