Reliance Power Limited IPO Message Board (Page 312)

I think people must go for part payment in this so that they can also apply for Future capital and keep this Reliance Power for a couple of years and see their money getting multiplied by 5 to 10 times as we saw in reliance petroleum issue. There is also news that reliance are planning to bring an FPO which is for raising additional capital within a year so guys apply part payment method and hold this for a year and see the magic.

1. Payment Method - 1 (Partial payment option)

Even though the issue price of the Reliance Power Limited IPO is in between of Rs 405 to Rs 450 per equity share, investor are all allowed to pay a partial amount Rs 115 Per Equity share at the time of bidding.

Below are few facts and highlights of partial payment option:

1. Only Retail Individual Bidders and Non-Institutional Bidders are eligible for this method QIBs cannot submit a bid under this Payment Method.
2. While bidding, the Bidder shall make a payment of Rs. 115 per Equity Share, irrespective of the Bid Price. Investors should note that the total Bid Amount will be used to determine whether a Bid is in the Retail Individual category, Non-Institutional category or not, and not the amount payable on submission of Bid-Cum-Application Form.
3. At the time of allotment:
* If the amount paid by the Bidder is equal to or higher than the total amount payable (being the Issue Price multiplied by the number of shares allotted) by the Bidder on the Equity Shares allotted to the Bidder, company reserve the right to adjust the excess amount towards the Balance Amount Payable and issue fully paid Equity Shares only. The excess amount, if any, after adjusting the Balance Amount Payable shall be refunded to the Bidder (i.e., Refund = Total amount paid on bidding minus the total amount payable on the shares allotted).
* If the amount paid by the Bidder is less than the total amount payable by the Bidder (being the Issue Price multiplied by the number of shares allotted) on the Equity Shares allotted to the Bidder, company reserve the right to adjust the excess of the amount received from the Bidder over the Amount Payable on Submission of Bid-cum-Application Form towards the Balance Amount Payable and issue a Call Notice for the balance.
* The notice of the Balance Amount Payable will be published in two widely circulated newspapers (one each in English and Hindi) and a regional newspaper along with the statutory advertisement for the Basis for Allotment.
4. Equity Shares in respect of which the Balance Amount Payable remains unpaid may be forfeited, at any time after the Due Date for Balance Amount Payable.

Timetable to pay balance for partial payment option

*** Day X = Listing day of share at BSE and NSE
Event       Indicative Time Period (On or around)
1. Basis of Allotment       Day X – 9 days
2. Listing of shares       Day X
3. Period (21 days) during which shareholders may make payment for the Balance Amount Payable.       Day X + 12 days
4. Corporate action for appropriation of Balance Amount Payable and for credit of fully paid shares to the demat accounts of shareholders who have paid the amount       Day X + 26 days
Partial payment options advantages and disadvantages:

1. If the amount paid is less then the total amount of shares allocated, the allocated shares will remain locked until investor pays the balance amount. This means investor may not sell the shares on listing day and get benefited from listing day gains.
2. There will not be any difference in share allocation process for different payment type. All the valid application received will be considered for IPO Allotment irrespective of payment type chosen.
3. NRI investors comes under Non-Institutional Bidders category thus they have Partial payment option.

2. Payment Method - 2 (Full payment option)

This is the standard method of bid payment where investor pay full amount at the time of submitting the bid.

Below are few facts and highlights of this payment option:

1. Bidders under any category can choose this method.
2. While bidding, the Bidder shall have to make the full payment (Bid Amount multiplied by number of Equity Shares bid) for the equity shares bid. Bidders in QIB category will be required to make payment of 10% of the Bid Amount multiplied by the number of Equity Shares bid, with the balance being payable on allocation but before allotment.

Important note:

1. Every Retail Individual Bidder should indicate the choice of Payment Method (i.e. Payment Method-1 or Payment Method-2 as applicable) in the Bid cum-Application Form, subject to the Bidder’s eligibility for the Payment Method. Once the choice is indicated, the Bidder should not revise the selection. No Bidder can select both the Methods in a Bid-cum-Application Form. In case no Payment Method is selected and the full Bid Amount is paid, then the default Payment Method would be Payment Method-2.
2. If investors who opt for Payment Method-1 (partial payment option) do not pay the Balance Amount Payable, the amount raised through the Issue will be lower than the proposed Issue size. In the event of such shortfall, the extent of the shortfall will be made by way of such means available to the Company and at the discretion of the management, including by way of incremental debt or cash available with the company.
3. Shares issued to investors who opt for Payment Method-1 will not be traded till the corporate action for credit of fully paid shares is completed. The Equity Shares of which the Balance Amount Payable has not been paid within the prescribed time limit are liable for forfeiture. The shortfall due to forfeiture may be made up by re-issue of the forfeited Equity Shares.
4. All non resident bidders availing the option of payment method-1 are required to submit a copy of an approval from the RBI allowing them to subscribe to the partly-paid up equity shares

The price for retail is 430 i.e. 450 - 20 which is the discount for retail segment = 430. and one should go for the part payment option i.e. Rs 115* 225=25875. And mind that (this is what i have understood) If allotment is for Rs.32250 i.e. 430*75shares, then amount of 25875 that you paid will get adjusted and you will have to pay the balance Rs.6375 when the company makes the call. If allotment is for less i.e.60shares*430=25800 then you will get Rs.75 cheque and your allotment of shares will become fully paid up shares so that u can sell on listing day itself if you want.

Thats Ok but I will never suggest you to do so as this company seems to be Good to me but then Market is Market and aver and above all if you fail people abuses you but if proven correct then nobody praises you

ya same but i did not buy brigade in sec market.

I think ur and mine was same as I had
BGR 0 Shares
Tril 15 Shares
Brigade 57 Shares + 143 which I bought from Secondry @367/- on the Listing Day

Can someone advise me which payment option one should go for?

souce:economic times
Reliance to foray into foreign soil for power generation

AHMEDABAD: Anil Ambani Group's Reliance Power plans a foray into foreign countries for power generation.

"I do not believe India alone will be our domain," Reliance Power chairman Anil Ambani told reporters here on Saturday while announcing the company's initial public offer aimed at raising close to three million dollars, country's largest IPO.
We are hoping that the Singapore government will soon allow private partnership in power generation. We also want to have presence in the West Asian countries. Unfortunately I cannot reveal our exact plans for foreign forays now," Ambani said.

Replying to a question on the likelihood of tariff reduction in power, he said "electricity tariffs are likely to come down in the country once the power demand is fulfilled. Even if the power distribution losses are brought to 10 or 15 per cent of present national average of 35 per cent, tariffs will come down".
We have to ensure that power tariffs in India are on par with international rates so as to allow our business and service sectors to compete in the global market," Ambani said.

"What were the tariffs of mobile phones in 2000 and what are they in 2008," he said, indicating that electricity tariffs might come down due to entry of private players.

The public offer will open on January 15 and close on January 18. Shares will be sold in a price band of Rs 405-450.

Reliance Power is presently developing 13 medium and large-sized power projects with a combined planned installed capacity of 28,200 mw, one of the largest portfolios of power generation assets under development in India, Ambani said.

Ambani, who had visited the holy shrine of Shreenathji in Rajasthan to pray for the success of country's largest IPO, said "Ahmedabad, is the first place outside Mumbai where I have come to announce the IPO as I have an attachment with the city".

"I have spent around five years in the city where I learnt the art and science of business from my father Dhirubhai Ambani," he added.

Anil said that out of 70 lakh investors in his group, 20 lakh are residents of Gujarat.

Replying to a question on his company's plan to set up power generation unit in Gujarat, Anil said "we had bid for the ultra mega power project in the state but lost out. We will bid for other ultra mega power projects in the state".

"We will also come to Gujarat if the central or state governments plan disinvestment of any of the mega power projects located in the state," Anil added.

but ur suggestions are always good and worthful.I remember how u adviced me to apply in transformers,BGR,and brigade. But bad luck I did not get allotment in BGR.

You need not to thank for this because this is how we exchange our views with each other and this makes the picture clear

Mind it Prasad there are People on Board to Blame Tulsiyani where as its only his study but he never makes a compulsion on anyone. What One can see the Fundamentals, Track Record and Market response thats it

Thanks a lot for your valuable inputs.I think even Emmar Mgf and IRBinfra ipos also this moth end.so managing money is difficult.

See all this depends as you have to keep an Eagle's Eye, Dogs ears for Tracking the Issue Day by day. Nobody can be Perfect

This figure is on the basis of current information I have but will might get changed after I recieve the clarification from the Registrars for which I have written to them a mail Yesterday and am waiting for the Reply.

but i think even there allotment will not be firm as seen in BGR energy ipo

Dear Prasad 225

Dear N.K.Jain if i apply in noninsttitutional whats the min no of shares to be applied?

kumar,Saudi Arabia I think is this information sufficient for you

All non resident bidders availing the option of payment method-1 are required to submit a copy of an approval from the RBI allowing them to subscribe to the partly-paid up equity shares.

NRI investors comes under Non-Institutional Bidders category thus they have Partial payment option.