October 3, 2007

Reliance Energy

Reliance Energy Ltd (REL) has informed that the draft red herring prospectus for the IPO of Reliance Power Ltd (a company promoted by REL and the Reliance Anil Dhirubhai Ambani Group) has been filed with SEBI on October 03, 2007.

In this regards REL has issued following Press Release :

"Reliance Power Ltd ("the Company") proposes an initial public offering of 1,300,000,000 Equity Shares of Rs 2 each ("Equity Shares") for cash at a premium (the "Issue") to be decided through a 100% book building process. The Issue includes a promoters' contribution of 160,000,000 Equity Shares which shall be allotted at the IPO price. The balance 1,140,000,000 Equity Shares would constitute the net issue to the public (the "Net Issue"). The Issue will constitute 11.5% and the Net Issue will constitute 10.1% of the post-Issue paid-up equity capital of the Company.

The Company has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India ("SEBI") on October 03, 2007.

At least 60% of the Net Issue to the public shall be allotted on a proportionate basis to Qualified Institutional Buyers (QIBs) of which 5% shall be available for allocation to Mutual Funds only and the remaining QIB Portion shall be available for allocation to all the QIB Bidders, including Mutual Funds, subject to valid Bids being received at or above the Issue Price. Further, at least 30% of the Net Issue shall be available for allocation on a proportionate basis to the retail Individual Bidders and at least 10% of the Net Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders, subject to valid Bids being received at or above Issue Price.

The Company is part of the Reliance Anil Dhirubhai Ambani group and is currently engaged in the construction and development of various gas and coal based thermal power projects and hydro power projects in various parts of the country.

The Issue proceeds are proposed to be utilized for funding subsidiaries to part-finance the construction and development costs of the various projects under development and for general corporate purposes.

The Equity Shares of the Company are proposed to be listed on the Bombay Stock Exchange Ltd ("BSE") and the National Stock Exchange of India Ltd ("NSE").

Kotak Mahindra Capital Company Ltd, UBS Securities India Pvt Ltd, ABN Amro securities (India) Pvt Ltd, Deutsche Equities India Pvt Ltd, Enam Securities Pvt Ltd, ICICI Securities Ltd, JM Financial Consultants Pvt Ltd & J P Morgan India Pvt Ltd are acting as the Book Running Lead Managers to the issue whilst Macquarie India Advisory Services Pvt Ltd and SBI Capital Markets Ltd are acting as Co-Book Running Lead Managers. Amarchand & Mangaldas & Suresh A Shroff & Co. is advising the Company whilst Cleary Gottieb Steen & Hamilton and J Sagar & Associates are advising the BRLMs and CBRLMs in relation to the issue."

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