In early February, when the Reliance Power share will list, Anil Ambani will topple elder brother Mukesh as the richest Indian — and also, perhaps, Lakshmi Mittal.
Anil Ambani speaks about the blockbuster Reliance Power IPO and future projects
In early February, when the Reliance Power share will list, Anil Ambani will topple elder brother Mukesh as the richest Indian — and also, perhaps, Lakshmi Mittal as the richest Indian in the world.
On Saturday, after witnessing one of the largest responses to an IPO anywhere in the world, it was time to show familial fealty: When the question was popped, Anil was prepared: “It is always seen that in families, elder brothers are always ahead in race.” Which way he meant the comment to be read is hard to say, but the sharp dresser’s humour and confidence was conspicuous at a press conference to announce India’s most successful public issue ever. The mood was relaxed, even jolly and the questions went beyond matters of business.
Did he see India’s famous victory in the cricket test at Perth some minutes before? “I didn’t as I was too engrossed with company matters.”
Another: What did his sons have to say about the blockbuster IPO show? “I have two sons and the IPO is past for them. They are now more concerned about the (Mumbai) marathon,” said Anil.
But the core part of the interaction was the record breaking Rs11,500 crore public offer of Reliance Power that within four days last week garnered commitments of Rs7.5 trillion — that’s nearly half of India’s forex reserves. Of this, foreign investors alone committed $100 billion, or five times what they invested in the whole of 2007. While dubbing the IPO a tribute to his father, Ambani wished he could do more for the retail investor.
“It is our misfortune that we do not get the opportunity to allot shares to every retail investor.” Nearly 50 lakh people have applied for the share, meaning, at listing, it will be the largest base of investors anywhere. He said the company is the first in India to be giving shares at a discount of Rs20 to retail investors.
“Since we have fixed the issue price at Rs450 per share, retail investors would get it for Rs430,” he said. While coursing the distance may be a breeze for this practiced runner, but a far, far tougher marathon awaits him — of executing 13 mega and ultra-mega power projects that are crucial to the country’s infrastructure needs.
Anil was quick to assure: “Our focus in the future will be execution, execution and execution,” he said. Indeed, execution is what will decide the company’s fortunes. Anil will have to match —- and outdo — Mukesh, touted the world’s best project manager, to announce his bigger arrival. Investors have already bet he can pull it off.
m_promit@dnaindia.net
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