Isnt It An Irony That There Is Not So Much Of Loot In The Market For The rpower Shares, Even Though The Company Is Going To Give 3 Free Shares of face value of Rs.10 On Every 5 Shares of face value of Rs.10 Held On The 2nd Of June 2008? This Way Every One Rupee Is Going To Become Rs 1.60 In Just 15 Days For Sure. 60% Hike Of Money With Guarantee In Just 15 Days Is Not A Joke. THIS IS JUST NOT AN EXCHANGE OF RS.10 INTO 2 FIVES, BECAUSE THE FACE VALUE OF THE RPOWER SHARES WILL REMAIN RS.10 EVEN AFTER THE DISTRIBUTION OF FREE BONUS SHARES, MEAN TO SAY THAT FACE VALUE WILL REMAIN THE SAME AND THE NUMBER OF SHARES INCREASES, THEN WHY NOT YOU GET BENEFITED?. AND AS FAR AS THE MARKET VALUE OF THE SHARES IS CONCERNED IT IS NOT DECIDED BY THE COMPANY. PRESENTLY IT IS POSITIVELY FIRM ON ITS MARK AT AROUND RS.410. Am I Right? Comments Plz!
Rpower Will Be Overlooted Before 2nd Of June 2008!!!!!!
- Thread starter Abhishek.Prasad
- Start date
It is highly overpriced is an understatement. It just doesnt have any financials. Its bookvalue is about Rs.40. Except that it has licence for power production, there is nothing that is positive about the company. Every share has its price, even the best co's share is bad when the price becomes too high. Market will give its time, and, when it starts demanding its pound of flesh, watch this share.
Even after starting production, there is no possiblity of this company making enough profits to justify even Rs.100. Do not touch this share even with a barge pole!
Even after starting production, there is no possiblity of this company making enough profits to justify even Rs.100. Do not touch this share even with a barge pole!
THERE IS NOTHING LIKE NEW LOWER PRICE BAND FOR THE RPOWER SHARES, BECAUSE IT IS DAMN NOT A SPLITTING OF SHARE’S FACE VALUE. THE COMPANY DECLARED THE BONUS IN A MISHAP THE BONUS IN ORDER TO GAIN THE PUBLIC FAITH FOR ITS FORTHCOMMING IPOs. IT IS JUST A GIFT AS A RESULT OF WHAT HAPPENED ON ITS LISTING DATE.THANKS TO THE BAD LISTING!!!!!!!!!!!
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R. Power has so many projects which are under progress. Hereafter Re is down NRI amount will flow inside and then the share value automatically increase. Check share value of some power co's which is high. Now significantly R.Power share value also go up see the report
Qatar signs deal with Indias Reliance Power for $3.8bn power project
Posted on 09 May 2008
Qatar Petroleum (QP) and Qatar Electricity and Water Company (QEWC) together with a consortium of companies have joined force on a world-scale power and water project with a production capacity of 2,730 MW of electricity and 63 Million Gallons per Day (MIGD) of water.
The Ras Laffan C plant to be located at Ras Laffan Industrial City is slated for completion by 2011 in phased manner. Deputy Premier and Minister of Energy and Industry H E Abdullah bin Hamad Al Attiyah said the total project cost is estimated at $3.8bn
QP and QEWC signed a joint venture agreement with Indian based Reliance Power Ltd to establish the Ras Girtas Power Company to build the facility.
QP has 15 percent stake in the company, QEWC 45 percent and the remainder 40 percent is owned by Reliance Power Ltd. Under the Build-Operate-Own-Transfer 25 electricity and water purchase agreement, the power and water will be sold to Qatar Electricity and Water Corporation (Kahramaa).
The first phase of the project is slated for completion in May 2010 with electricity production capacity reaching 1,600MW. The capacity will increase to 2,730MW by April 2011. Meanwhile, the plants water production capacity will reach 24 MIGD by August 2010 increasing to 63 MIGD by September of the same year.
The plant of this scale with such huge production capacity is one of the worlds largest facilities, Al Attiyah told reporters after the agreement signing at QP headquarters.
We need to raise power and water output to cope with consumption requirements in the country as it continues to grow. Abdullah bin Hamad said other electricity and water projects to be set in other parts of the country in the future such as in the Dukhan area is also being studied.
Reliance Power President Mr. Anil Ambani said state of the art technology will be utilized for the facility and envision more efficient technology for water desalination unit is envisioned.
Further Mr. Ambani explained that C plant is the first such project in which his company is being involved. It is very significant for us and we would like to be involved in further projects in the future and contribute to the development of this country, he said.
The Peninsula
Qatar signs deal with Indias Reliance Power for $3.8bn power project
Posted on 09 May 2008
Qatar Petroleum (QP) and Qatar Electricity and Water Company (QEWC) together with a consortium of companies have joined force on a world-scale power and water project with a production capacity of 2,730 MW of electricity and 63 Million Gallons per Day (MIGD) of water.
The Ras Laffan C plant to be located at Ras Laffan Industrial City is slated for completion by 2011 in phased manner. Deputy Premier and Minister of Energy and Industry H E Abdullah bin Hamad Al Attiyah said the total project cost is estimated at $3.8bn
QP and QEWC signed a joint venture agreement with Indian based Reliance Power Ltd to establish the Ras Girtas Power Company to build the facility.
QP has 15 percent stake in the company, QEWC 45 percent and the remainder 40 percent is owned by Reliance Power Ltd. Under the Build-Operate-Own-Transfer 25 electricity and water purchase agreement, the power and water will be sold to Qatar Electricity and Water Corporation (Kahramaa).
The first phase of the project is slated for completion in May 2010 with electricity production capacity reaching 1,600MW. The capacity will increase to 2,730MW by April 2011. Meanwhile, the plants water production capacity will reach 24 MIGD by August 2010 increasing to 63 MIGD by September of the same year.
The plant of this scale with such huge production capacity is one of the worlds largest facilities, Al Attiyah told reporters after the agreement signing at QP headquarters.
We need to raise power and water output to cope with consumption requirements in the country as it continues to grow. Abdullah bin Hamad said other electricity and water projects to be set in other parts of the country in the future such as in the Dukhan area is also being studied.
Reliance Power President Mr. Anil Ambani said state of the art technology will be utilized for the facility and envision more efficient technology for water desalination unit is envisioned.
Further Mr. Ambani explained that C plant is the first such project in which his company is being involved. It is very significant for us and we would like to be involved in further projects in the future and contribute to the development of this country, he said.
The Peninsula
THE RPOWER COMPANY IS GONNA BE THE WORLDS LARGEST ENERGY PRODUCING COMPANY IN A DECADE AND IS ALL SET TO DO SO. AND HENCE ARISES NO QUERY OF THE DECLINE OF ITS MARKET CAP, RATHER IT WILL TOUCH A NEW HIGH EVERY COMING MONTHS.ALSO, THERE IS NOTHING LIKE NEW LOWER PRICE BAND FOR THE RPOWER SHARES, BECAUSE IT IS DAMN NOT A SPLITTING OF SHARES FACE VALUE (Rs. 269 IS JUST FOR THE CALCULATION SAKE AND HAS NOTHING TO DO WITH ITS OPEN GRAY MARKET VALUE ). THE COMPANY DECLARED THE BONUS IN A MISHAP THE BONUS IN ORDER TO GAIN THE PUBLIC FAITH FOR ITS FORTHCOMMING IPOs IN THE SAME OVERWHELMING WAY.
The face value of the share will be the same. It will not change. Anil Ambani is paying for the bonus share from his pocket. It'll probably reduce a little as there will be influx of shares into the market after the bonus shares are allotted as many will be selling to book profits. Hope this was helpful. the market value will go above 1200 with in 4 months. R.Power has so many projects out of india which they will announce after announcing the shares this message is from internal management. If they announce that then the value will go up again.
Abhi, You are a trusting guy, arent you? Anil giving you from his pocket? BIGGEST JOKE!He realised that the market is foolish, but not as much foolish as he thought, when he found it going down, down, down ... Everyone including the media knows that it is an acceptance of the fact that the issue was OVER-OVER-OVER-PRICED.
Anil put in about 2,000 cr, and, the mkt about 10,000cr, Anil's 2k cr is 90k cr, and mkt's 10k cr is < 10k cr!
Read the following links from traderji :
http://www.traderji.com/initial-public-offers-ipo-s/18758-reliance-power-ipo-worth.html
http://www.traderji.com/initial-pub...a-ko-bevakoof-samajah-rakha-hai-new-post.html
==================================================================
Some info from Sandeep721 in the above links:
Business:
The company claims that it will be developing power generation projects of 28200 MW over the next decade.
According to the IPO RHP, some of the projects that it will be developing are:
Rosa-I (to be commissioned in March 2010) - 600 MW - Coal based.
Butibori (to be commissioned in June 2010) - 300 MW - Coal based.
Rosa-II (to be commissioned in September 2010) - 600 MW - Coal based.
Shahpur Gas (to be commissioned in March 2011) - 2800 MW - Gas based.
Shahpur Coal (to be commissioned in December 2011) - 1200 MW - Coal based.
Dadri (to be commissioned in March 2013) - 7480 MW - Gas based.
Krishnapatnam (to be commissioned in September 2013) - 4000 MW - Coal based.
Urthing Sobla (to be commissioned in March 2014) - 400 MW - Hydropower based.
Tato II (to be commissioned in March 2014) - 700 MW - Hydropower based.
MP Power (to be commissioned in July 2014) - 3960 MW - Coal based.
Siyom (to be commissioned in March 2015) - 1000 MW - Hydropower based.
Kalai II (to be commissioned in March 2016) - 1200 MW - Hydropower based.
Sasan (to be commissioned in April 2016) - 3960 MW - Coal based.
If
everything goes as planned, capacity of Reliance Power at end of each year till 2016 will be:
2008: 0 MW.
2009: 0 MW.
2010: 1500 MW.
2011: 5500 MW.
2012: 5500 MW.
2013: 16980 MW.
2014: 22040 MW.
2015: 23040 MW.
2016: 28200 MW.
=======================================
Other Similar Companies:
I can think of two companies in the power generation sector that Reliance Power can be compared with:
NTPC and Tata Power.
NTPC has current capacity of 28000 MW and has target to achieve 66000 MW by 2017. ( See this thread on NTPC).
Tata Power has current capacity of 2300 MW.
It will be adding 10000 MW of capacity more by 2012. Thus, it will have a capacity of around 12300 MW by 2012 end.
The additions will all be coal based.
-Mundra Ultra Mega Power Project -4000 MW.
-Power plants in Maharastra - 3000 MW.
-Captive power plants for Tata Steel - 2000 MW
-Maithon Power Plant at Jharkhand - 1000 MW.
Tata Power also has other smaller business and also wants to enter shipping and logistics. Besides that Tata Power has investments valued at Rs 400+ per share of Tata Power. This works out to be Rs 10000 crore. Around 2012 - 2013, both Tata Power is expected to have similar capacity as Reliance Power.
The interesting thing is at current price of Rs 1457, Tata Power is valued at just Rs 30000 crore. Remove Rs 10000 crore of investments and you can have it only for Rs 20000 crore.
At Rs 900, Reliance Power will have market value of 200000 crores....6.67 times that of Tata Power. .
========================================
Financials:
With 2300 MW capacity, Tata Power made standalone profit of Rs 700 crore in FY 2007.
With 28000 MW capacity, NTPC made standalone profit of Rs 6900 crore in FY 2007.
Lets assume Reliance Power turns out to be much more efficient than these two companies. Add to that increased power rates.
With 28200 capacity, assume Reliance Power makes Rs 15000 crore of net profit in 2016-2017. Power companies are considered as utilities and worldwide trade at 10-15 times their earnings.
Lets assume 15 times ratio for Reliance Power in 2016.
What will be its market value?
15000 X 15 = Rs 225000 crore or Rs 995 per share.
This is an optimistic view:
-there will be no further equity dilution till 2016.
-assuming nearly twice as much efficiency as NTPC.
-that all projects will be completed before 2016 end.
-the company would have paid back all debt by then and interest costs would be in similar range as NTPC.
(NTPC already has established 28000 MW capacity and comparatively much lesser interest costs. (NTPC's P&L account states Rs 1800 interest cost for FY 2007).
So what about the debt?
The RHP mentions estimated cost of six projects Rosa I, Rosa II, Butibori, Sasan, Shahpur Coal, Urthing Sobla as Rs 30000 crore+.
Analysts estimate that Reliance Power will need Rs 70000 crore of debt to finance its projects which are estimated to cost 100000 crore+.
Rs 70000 crore of debt is not going to come at 2% interest rate. Even a 6% interest would mean an annual interest cost of Rs 4200 crore. Only in 2013, the company's capacity will cross 10000 MW. Thus, I do not expect any major debt repayment before 2014. If things don't go as planned, the debt burden will make a mockery of the balance sheet.
With Rs 12000 crore raised in equity and Rs 70000 crore of debt, these whole business will become a high-risk venture.
Any unforeseen delay/derailment of plans may create major problems for this company.
========================================
Reliance Power - The Overlooked Fact:
Is Reliance Power just "Reliance Power"?
No.
It is actually "Reliance Power Limited" - a limited company.
So what does this mean for Reliance Power Limited?
It means if in the rare case, the calculations of the management go wrong and the company somehow goes to insolvency, none of the shareholders will lose anything expect the value of the shares.
If you are a share holder of Reliance Power and it goes into insolvency (unable to pay back debts), what do you stand to lose?
Rs 430 per share.
Lot of money....right?
What does Anil Ambani's AAA Project or REL lose?
Both of them had got their 45% (post-IPO) stake for Rs 1000 crore each. Plus they will each subscribe to 1.6 crore shares each at Rs 450 in the IPO......which works out to be Rs 720 crore.
Thus, AAA Project will be getting 101.6 crore shares of Reliance Power for Rs 1720 crore and REL will be getting 101.6 crore shares of Reliance Power for Rs 1720 crore.
Little less than Rs 17 per share.
This is what both the promoters are risking in this project....Rs 17 per share ; while investors will be risking Rs 450 per share.
This is exactly the reason why Reliance Power was created.
First, by contributing just Rs 1720 crore each to Reliance Power, the promoters have shifted all risk to investors.
Second, by getting 45% stake (in REL's projects) to AAA Project for a mere Rs 1000 crore, AAA Projects (and Anil Ambani) have created wealth out of thin air.
Anil Ambani's Rs 1000 crore investment will be worth Rs 100000 crore when Reliance Power lists at Rs 900.
If the gamble works, the promoters (holding 90% stake in Reliance Power) will be worth billions of dollars.
If the gamble doesn't work, the promoters will lose Rs 1720 crore each and investors will lose Rs 10000+ crore which they will be paying for a mere 10% stake in Reliance Power.
What a way to create wealth...!!!....I don't have words to describe the brilliance of Anil Ambani's plans... .
==================================================================
Do you know how much money is needed to even reach NTPC? A whopping 100,000 cr atleast.
RPOWER has around 12000 cr, mkt values it around 1 lakh cr. How is the rest to be financed? Debt, you can write off this company, as it is impossible to debt finance a power project, atleast at the current price of electricity. What if the electricity price go up? China's electricity price is about Rs.0.65 per kWHr (Unit), just for comparison, and, you know how much it is now. Any phenomenal increase will kill all other industries. So Anil would come to the market again, and, the trusting bunch will invest again?
Anil put in about 2,000 cr, and, the mkt about 10,000cr, Anil's 2k cr is 90k cr, and mkt's 10k cr is < 10k cr!
Read the following links from traderji :
http://www.traderji.com/initial-public-offers-ipo-s/18758-reliance-power-ipo-worth.html
http://www.traderji.com/initial-pub...a-ko-bevakoof-samajah-rakha-hai-new-post.html
==================================================================
Some info from Sandeep721 in the above links:
Business:
The company claims that it will be developing power generation projects of 28200 MW over the next decade.
According to the IPO RHP, some of the projects that it will be developing are:
Rosa-I (to be commissioned in March 2010) - 600 MW - Coal based.
Butibori (to be commissioned in June 2010) - 300 MW - Coal based.
Rosa-II (to be commissioned in September 2010) - 600 MW - Coal based.
Shahpur Gas (to be commissioned in March 2011) - 2800 MW - Gas based.
Shahpur Coal (to be commissioned in December 2011) - 1200 MW - Coal based.
Dadri (to be commissioned in March 2013) - 7480 MW - Gas based.
Krishnapatnam (to be commissioned in September 2013) - 4000 MW - Coal based.
Urthing Sobla (to be commissioned in March 2014) - 400 MW - Hydropower based.
Tato II (to be commissioned in March 2014) - 700 MW - Hydropower based.
MP Power (to be commissioned in July 2014) - 3960 MW - Coal based.
Siyom (to be commissioned in March 2015) - 1000 MW - Hydropower based.
Kalai II (to be commissioned in March 2016) - 1200 MW - Hydropower based.
Sasan (to be commissioned in April 2016) - 3960 MW - Coal based.
If
everything goes as planned, capacity of Reliance Power at end of each year till 2016 will be:
2008: 0 MW.
2009: 0 MW.
2010: 1500 MW.
2011: 5500 MW.
2012: 5500 MW.
2013: 16980 MW.
2014: 22040 MW.
2015: 23040 MW.
2016: 28200 MW.
=======================================
Other Similar Companies:
I can think of two companies in the power generation sector that Reliance Power can be compared with:
NTPC and Tata Power.
NTPC has current capacity of 28000 MW and has target to achieve 66000 MW by 2017. ( See this thread on NTPC).
Tata Power has current capacity of 2300 MW.
It will be adding 10000 MW of capacity more by 2012. Thus, it will have a capacity of around 12300 MW by 2012 end.
The additions will all be coal based.
-Mundra Ultra Mega Power Project -4000 MW.
-Power plants in Maharastra - 3000 MW.
-Captive power plants for Tata Steel - 2000 MW
-Maithon Power Plant at Jharkhand - 1000 MW.
Tata Power also has other smaller business and also wants to enter shipping and logistics. Besides that Tata Power has investments valued at Rs 400+ per share of Tata Power. This works out to be Rs 10000 crore. Around 2012 - 2013, both Tata Power is expected to have similar capacity as Reliance Power.
The interesting thing is at current price of Rs 1457, Tata Power is valued at just Rs 30000 crore. Remove Rs 10000 crore of investments and you can have it only for Rs 20000 crore.
At Rs 900, Reliance Power will have market value of 200000 crores....6.67 times that of Tata Power. .
========================================
Financials:
With 2300 MW capacity, Tata Power made standalone profit of Rs 700 crore in FY 2007.
With 28000 MW capacity, NTPC made standalone profit of Rs 6900 crore in FY 2007.
Lets assume Reliance Power turns out to be much more efficient than these two companies. Add to that increased power rates.
With 28200 capacity, assume Reliance Power makes Rs 15000 crore of net profit in 2016-2017. Power companies are considered as utilities and worldwide trade at 10-15 times their earnings.
Lets assume 15 times ratio for Reliance Power in 2016.
What will be its market value?
15000 X 15 = Rs 225000 crore or Rs 995 per share.
This is an optimistic view:
-there will be no further equity dilution till 2016.
-assuming nearly twice as much efficiency as NTPC.
-that all projects will be completed before 2016 end.
-the company would have paid back all debt by then and interest costs would be in similar range as NTPC.
(NTPC already has established 28000 MW capacity and comparatively much lesser interest costs. (NTPC's P&L account states Rs 1800 interest cost for FY 2007).
So what about the debt?
The RHP mentions estimated cost of six projects Rosa I, Rosa II, Butibori, Sasan, Shahpur Coal, Urthing Sobla as Rs 30000 crore+.
Analysts estimate that Reliance Power will need Rs 70000 crore of debt to finance its projects which are estimated to cost 100000 crore+.
Rs 70000 crore of debt is not going to come at 2% interest rate. Even a 6% interest would mean an annual interest cost of Rs 4200 crore. Only in 2013, the company's capacity will cross 10000 MW. Thus, I do not expect any major debt repayment before 2014. If things don't go as planned, the debt burden will make a mockery of the balance sheet.
With Rs 12000 crore raised in equity and Rs 70000 crore of debt, these whole business will become a high-risk venture.
Any unforeseen delay/derailment of plans may create major problems for this company.
========================================
Reliance Power - The Overlooked Fact:
Is Reliance Power just "Reliance Power"?
No.
It is actually "Reliance Power Limited" - a limited company.
So what does this mean for Reliance Power Limited?
It means if in the rare case, the calculations of the management go wrong and the company somehow goes to insolvency, none of the shareholders will lose anything expect the value of the shares.
If you are a share holder of Reliance Power and it goes into insolvency (unable to pay back debts), what do you stand to lose?
Rs 430 per share.
Lot of money....right?
What does Anil Ambani's AAA Project or REL lose?
Both of them had got their 45% (post-IPO) stake for Rs 1000 crore each. Plus they will each subscribe to 1.6 crore shares each at Rs 450 in the IPO......which works out to be Rs 720 crore.
Thus, AAA Project will be getting 101.6 crore shares of Reliance Power for Rs 1720 crore and REL will be getting 101.6 crore shares of Reliance Power for Rs 1720 crore.
Little less than Rs 17 per share.
This is what both the promoters are risking in this project....Rs 17 per share ; while investors will be risking Rs 450 per share.
This is exactly the reason why Reliance Power was created.
First, by contributing just Rs 1720 crore each to Reliance Power, the promoters have shifted all risk to investors.
Second, by getting 45% stake (in REL's projects) to AAA Project for a mere Rs 1000 crore, AAA Projects (and Anil Ambani) have created wealth out of thin air.
Anil Ambani's Rs 1000 crore investment will be worth Rs 100000 crore when Reliance Power lists at Rs 900.
If the gamble works, the promoters (holding 90% stake in Reliance Power) will be worth billions of dollars.
If the gamble doesn't work, the promoters will lose Rs 1720 crore each and investors will lose Rs 10000+ crore which they will be paying for a mere 10% stake in Reliance Power.
What a way to create wealth...!!!....I don't have words to describe the brilliance of Anil Ambani's plans... .
==================================================================
Do you know how much money is needed to even reach NTPC? A whopping 100,000 cr atleast.
RPOWER has around 12000 cr, mkt values it around 1 lakh cr. How is the rest to be financed? Debt, you can write off this company, as it is impossible to debt finance a power project, atleast at the current price of electricity. What if the electricity price go up? China's electricity price is about Rs.0.65 per kWHr (Unit), just for comparison, and, you know how much it is now. Any phenomenal increase will kill all other industries. So Anil would come to the market again, and, the trusting bunch will invest again?
The public has already been 'overlooted' (whatever that means) by Anil Ambani. Even the 40Rs book value has been created out of public money. This company has zero assets, zero operations, zero cash flows - i wonder how such IPOs are allowed in the first place, where there are no ways to arrive at a valuation for the company.
| Thread starter | Similar threads | Forum | Replies | Date |
|---|---|---|---|---|
| V | Future of Rpower | Members Discussion Forums | 0 | |
| R | Buying RPower | Equities | 0 | |
| H | Rpower Inver H&S | Technical Analysis | 0 | |
| A | RNRL merger with Rpower good or bad FOR RNRL | Equities | 36 | |
| R | Sharekhan doesn't show Rpower bonus share | Brokers & Trading Platforms | 2 |
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Sharekhan doesn't show Rpower bonus share
- Started by rock_archie
- Replies: 2