Reliance Power IPO

• Reliance Power is a 51% subsidiary of Reliance Energy.
• The company is estimated to raise up to Rs 12,000 crore through the proposed public offer.
• One of largest IPO in India
• SEBI has directed that 20% of the equity held the promoter group be locked in for a period of five years, instead of the mandatory three years as per the guidelines on IPOs.
• Expected to open first week of January

Subscription status for BGR Energy

Subscription
BGR Energy Systems IPO subscribed for more than 100 times
Retail segment more than 40% . Only 2 out of 5 investors who applied for maximum at cut off will get allotment in the BGR Energy IPO
The total demand exceeded Rs 52,000 crs. as against the offering of Rs 438 crs.

Listing
first week of January, 08

Utilization
Long term working capital requirements
expand production capacity by establishing additional manufacturing facilities in India, China and the Middle East and fund expenditure for general corporate purposes

Source : ET, Business Line, sites.

P/E For BGR & Transformers

1. BGR Engergy System : Rs 425-480 ( DEC 5- DE12 ) P/E =12.97 ( upper band 480) PEERs ABB quotes at 31.75 , Crompton grave 14.18.
2. Transformers & Rectifiers- Rs 425-465 ( Dec 7- DEC 12) Consolidated revenue FY 07 -Rs 221.crore net profit FY 07 -Rs 17.62 crore EPS - R14.9 P/E 31.2 (upper price band of 465) Peers EMCO quotes at a PE of 37.1 times, Bharat Bijlee at a PE of 34.7 times and Indo Tech at a PE of 28.5 times.

Source : Analyst report , News papers.