Business Case Studies, Financial Management & Corporate Finance Case Study, Reliance, Powerful IPO

print page
Tell A Friend

Case Categories

Financial Management & Corporate Finance Case Study

Case Title:

Reliance ‘Power’ful IPO

Publication Month & Year : July 2009

Authors: Manish Agarwal & D. Satish

Industry: Power

Region: India

Case Code: FM0013

Teaching Note: Available

Structured Assignment: Available


This case study was written primarily to understand the Initial Public Offer (IPO) in reference to India's largest public offering by Reliance-Anil Dhirubhai Ambani Group (R-ADAG) through the group's company, Reliance Power Limited (RPL) or Reliance Power to garner $3 billion in January 2008. The company has a biggest pipeline to develop 13 large andmediumsize power projects with the total outlay of $29 billion. In order to finance these projects company came up with the IPO to sell out 260 million shares of INR 10 each at the premium of INR 440 each. The issue got over-subsided by 73 times of shares offered and generated the demand worth more than $196 billion. However, This IPO got one of the worst listing on BSE on the very first day as stock plunged the shareholder's wealth by 17.22%.

This case offers an enriching discussion on pricing and timing of IPO and other issues related to the IPO such as efficacy of book-building process, etc.

Pedagogical Objectives:

  • To understand the various methods of raising capital
  • To scrutinise the pricing issue involved in public offering and highlight the difference between public issue and private placement
  • To understand the public offering in the Indian context and bring out the pros and cons of raising capital via IPO

Keywords : IPO; Initial Public Offering; Bidding strategy; SEBI; Paid-up capital; Bonus shares; MBA; Finance for Managers; Managerial Finance; Financial Management; Principles of Financial Management; Business Finance; Corporate Finance; Financial Management Course Case Pack; Course Case Maps; Course Case Packs; Financial Management Course Case

Recently Bought Case Studies

    Recently Bought Case Studies

    Executive Interviews

  • Al RiesAl Ries

    Chairman of Ries, an Atlanta-based marketing strategy firm
    Speaks on Brands and Branding
  • Michael BrimmMichael Brimm

    Prof. Michael Brimm is Emeritus Professor of Organization and Management at INSEAD.
    Speaks on Managing Complexity
  • W Chan Kim & Renee MauborgneW Chan Kim & Renee Mauborgne

    Co-Founders and Co-Directors of the INSEAD Blue Ocean Strategy Institute.
    Speaks on Blue Ocean Strategy
  • View All Executive Interviews»

Contact us: IBS Case Development Centre (IBSCDC), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad-501203, Telangana, INDIA.
Mob: +91- 9640901313,

©2020-2025 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap