Reliance Power slides after completion of OFS

The announcement was made after market hours on Wednesday, 19 December 2012.

Meanwhile, the BSE Sensex was down 26.87 points, or 0.14%, to 19,449.13.

On BSE, 21 lakh shares were traded in the counter as against an average daily volume of 15.85 lakh shares in the past one quarter.

The stock hit a high of Rs 98.05 and a low of Rs 96.49 so far during the day. The stock had hit a 52-week high of Rs 139.40 on 6 March 2012. The stock had hit a 52-week low of Rs 68.50 on 21 December 2011.

The stock had outperformed the market over the past one month till 19 December 2012, rising 7.39% compared with the Sensex's 6.20% rise. The scrip had also outperformed the market in past one quarter, gaining 8.46% as against Sensex's 5.30% rise.

The large-cap company has an equity capital of Rs 2805.13 crore. Face value per share is 10.

The promoters of Reliance Power have raised gross sales proceeds of approximately Rs 1500 crore by selling 5.42% stake in the Anil Ambani-controlled power producer at Rs 95 per share on proportionate allocation method.

The OFS received bids worth approximately Rs 2300 crore and was oversubscribed nearly 1.6 times from a large number of foreign and domestic institutional and other categories of investors, Reliance Power said in a statement.

The company said post offer for sale, the public shareholding in Reliance Power has increased to 25%, thereby improving liquidity, apart from meeting regulatory requirement of achieving minimum public shareholding in the company.

Reliance Power's consolidated net profit rose 2% to Rs 240.22 crore on 121.4% growth in net sales to Rs 1079.21 crore in Q2 September 2012 over Q2 September 2011.

Reliance Power, a part of Anil Dhirubhai Ambani's Reliance group, is India's leading private sector power generation company. The company has the largest portfolio of power projects in the private sector based on coal, gas, hydro and renewable energy, with an operating portfolio of 1,540 MW. The company also has the largest captive coal reserves in the private sector, estimated at two billion tonnes. Besides, the company is developing three coal mines in Indonesia and also developing coal bed methane based generation capacity.

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