Anil Ambani group firm Reliance Energy Limited (REL), on Sunday, announced its subsidiary Reliance Power will soon go public, a move that is presumed to help it raise up to Rs 12,000 crore ($3 billion) through the IPO. The IPO is believed to be the largest ever in the Indian stock market, exceeding the size of DLF’s recent IPO that raised close to Rs 9,000 crore.

Reliance Power is expected to file next week its draft prospectus for the IPO, which is aimed at part-financing its about Rs 100,000 investment plan for setting up coal, gas and hydro power projects in the country. If successful, the public offer could value the company at over $20 billion. The decision for an IPO was taken at the Board meeting of Reliance Energy Limited, headed by Ambani, whose group as such has a market capitalisation of over Rs 2,00,000 crore. “The Board approved a proposal by Reliance Power, a company promoted by Reliance Energy and Reliance ADAG, to undertake an IPO of equity shares. The DRHP for the IPO will be filed by RPL with SEBI shortly,” REL said in a statement.

Various projects
RPL is pursuing various gas, coal and hydro power generation projects in different parts of the country. The proposed IPO is being undertaken to fund the development of the said projects, the statement said.
The company said that the public issue is subject to necessary approvals and market conditions. The IPO for Reliance Power, which recently bagged the 4,000 MW Sasan power project from the government, is part of the revenue mobilisation exercise for business expansion.