Reliance Energy Seeks Capital Through Power Unit IPO   Mumbai, India 10.01.07, 4:59 AM ET -- Indian power producer Reliance Energy plans an initial public offering for its Reliance Power unit, which contributes about 63% of the company’s revenues.  “Reliance Power Limited is pursuing various gas, coal and hydro power generation projects in different parts of the country. The proposed IPO is being undertaken to fund the development of the said power projects,” the company said in a release Sunday after its board approved the move. Reliance Energy (other-otc: RELFF -news - people ) didn’t specify the amount, but media reports pegged it at about $3 billion. That would make for one of the largest ever public offerings by an Indian company. In recent months, India’s ICICI Bank (nyse: IBN - news - people ) raised $4.9 billion in a follow-on public offering, and real estate business DLF got $2.31 billion in an IPO. This will be the first time a company in Anil Ambani’s conglomerate will tap the capital markets since the original Reliance split in 2005, a result of feuding between Anil his brother Mukesh. (See “Indian Billionaire Ambani Brothers Reach Settlement”) Reliance Energy is believed to be restructuring its business into three vertically integrated units—utility, infrastructure--in which it is expanding aggressively--and real estate. Reliance Energy distributes more than 21 billion units of electricity to 25 million-plus consumers. It generates 941 megawatts of electricity through power stations in five states. The Mumbai-based company has revenues of about $2 billion and assets worth $2.4 billion. Reliance Energy and Anil Ambani’s investment company, Anil Dhirubhai Ambani Group, have equal stakes in Reliance Power. In July, Reliance Power won a bid to build a 4,000 MW government-controlled power project in the state of Madhya Pradesh. The coal-based power plant is expected to require an investment of about $5 billion. The company is eyeing another such project and presently has several plants under development with a combined capacity of 12,500 MW. The government intends to add capacity of 78,000 MW by 2012 to meet its goal of power for every household in this nation of a projected 1.2 billion people. It has planned seven new power plants of 4,000 MW each by then. (See " Reliance Energy Plans $15B Power Surge") At noon, Reliance Energy’s shares were trading up 8.4% at 1,306.25 rupees ($32.85) on the Bombay Stock Exchange. The benchmark Sensex was down a percent at 17,146.36. Murphy International Development, LLC P.O. Box 807 Georgetown, CT 06829 SKYPE: murphyintl office: 203.544.8303 fax: 203.544.8302 info@murphyintldev.com All pages Copyright ©2010 Murphy International Development, LLC Corporate Terms and Conditions