RPower owes Rs 11 cr in refund to IPO applicants

The government today said Anil Ambani group firm Reliance Power owes only Rs 11 crore in refunds to investors who had unsuccessfully applied for its mega IPO last year, while it has refunded Rs 99,281 crore.

“Reliance Power has informed Sebi that out of 47,91,073 refund cases amounting to Rs 99,292 crore, the number of pending cases as on February 20, 2009 is 5,243, amounting to Rs 11 crore,” the Lok Sabha was informed today.

The statement was made by Minister of State in the Ministry of Finance P K Bansal in a written reply to a question on whether a large number of small investors had still not received the refund under retail category of IPO of Reliance Power.

To a query on action taken or proposed to be taken against the promoters and lead managers in this regard, the minister said that no action was proposed to be taken by the market regulator Sebi as the pending cases included undelivered refund orders by postal authorities and warrants not been encashed by investors.

“Reliance Power has informed Sebi that out of 5,243 pending cases, in 1,302 cases refund orders were returned undelivered by postal authorities for various reasons and in the remaining 3,941 cases, the warrants have not been encashed by investors and therefore no action is proposed to be taken by Sebi,” the minister said.