The tight liquidity situation experienced in the secondary market following the overwhelming response to the Reliance Power Ltd (RPower) initial public offering (IPO) in the second week of January is expected to ease soon. The excess application money of approximately Rs 1 lakh crore received from investors in the RPower IPO will be refunded soon.
The company has already commenced the refund of the excess application money on Monday to the qualified institutional buyers (QIBs) and the non-institutional investors through electronics credits.
RPower has completed the allotment of its shares to successful investors, as per the basis of allotment approved by the Stock Exchange.
As per the allotment, over 41.7 lakh successful bidders in the retail category will be allotted 15 shares each while 4.5 lakh retail applicants who had applied for less than 225 shares will not be getting any shares according to the allocation as approved. Under the QIB category, which was oversubscribed by 82.5 times, 446 domestic and international investors have been allotted approximately 1.2% of their applied quantity of shares. Under the non-institutional investors category that was subscribed by 159.6 times, about 12,000 investors will get approximately 0.6% of their applied quantity of shares.
The company, in a press release, stated that the allotment and refund exercise post closure of the IPO has been carried out in a record short time of 10 working days considering that this IPO was by far the largest in the history of Indian capital markets.
Reliance Power IPO attracted over 5 million bids from all categories of domestic and international investors with aggregate commitment of over Rs 7,50,000 crore as against the issue size of Rs 11,560 crore.
