Reliance Power float raises $3bn

The share flotation of India's Reliance Power has raised $3bn (£1.5bn), making it India's biggest initial public offering to date.

The 228 million shares listed sold in under a minute and the float was four times oversubscribed.

The stock sold represented 10% of the power station firm, which is now valued at $30bn.

Reliance Power, part of Reliance Energy, aims to build a network of new power stations across India.

'Huge demand'

"There is a huge demand especially from retail investors and also from high-net-worth individuals. We were expecting such a response," said Ambareesh Baliga, vice president at Karvy Stock Broking.

The success of the flotation comes as India's main Mumbai stock market continues to boom on the back of the country's fast-growing economic expansion.

"The markets are doing very well and investors are getting good returns," said Ved Prakash Chaturvedi, managing director at Tata Mutual Fund.

"There is a fair amount of investor appetite for IPOs [initial public offerings]," said Mr Chaturvedi.

Reliance Power is run by billionaire chairman Anil Ambani.

His father, Dhirubhai Ambani, founded the wider Reliance Group back in 1958.

Anil's brother Mukesh runs the other side the group, oil and chemicals giant Reliance Industries.

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