Anil Ambani Group firm Reliance Power on Wednesday said it has proposed an initial public offering (IPO) of 13 crore equity shares of Rs 2 each for cash at a premium to be decided through a 100 per cent book building process.

The company has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) here.

Accordingly, the issue includes a promoters’ contribution of 1.60 crore shares, and the balance 11.40 crore shares would constitute the net issue to the public.

The issue will constitute 11.5 per cent, and the net issue will constitute 10.1 per cent of the post-issue paid-up equity capital of the company.

Meanwhile, Reliance Power has bagged the contract for Sasan Ultra Mega Power Project. Sources close to the development confirmed the possibility of prospectus being filed by Reliance Power aver that “the likely amount of the IPO is going to be around Rs 8,000 to Rs 10,000 crore.” The coal-based Sasan project is expected to complete in five years and it will require 15 million tonnes of coal annuall, soureces added.

Largest IPO

In such a case, this is expected to be largest IPO in recent times after DLF and ICICI Bank who had came out with the IPOs of Rs 9,187 crore and Rs 8,898 crore. 

Sources claimed Reliance Power is expected to use the funds generated through IPO for Sasan ultra mega power project as well as for expansion of existing project. However, the company spokesman refused to comment saying it does not want to comment on market speculations.