Truth of Reliance Power IPO -

General public is being offered this share at a premium of around 450 whereas Ambani bandhus have bought the same share in this company at par at Rs.10 only... Ambani bandhus have bought around 200 crore shares of reliance power some 18 months back for only around Rs. 2000 crores, and now they are offering only 28 crores to small investors in the market at heavy 45X premium at Rs. 450 to collect more than 11,000 crores ???

Reliance invested 2000 crores to get 200 crore shares?
People invest 11000 crores to get only 28 crore shares?

Reliance invested only 2000 crores.
People will invest 11000 crores??

Reliance got 200 crore shares.
People will get only 28 crore shares??

Will anyone accept such a partnership offer in real life?

And then they say they are doing MEHARBANI to the small investors by offering a discount of Rs.20? Are you kidding? Janta ko BEVAKOOF SAMAJAH RAKHA HAI KYA?

Is SEBI dead?

I believe this share will fall to Rs. 280 at least as soon as it will get listed.

ril bhi logon nr 10 mein nahin liya phir 50mein 100mein 250mein 300mein nahin liya ab3000 mein bechne ke bajaye lena prefer karte hain. hope ke 450/- na lekar galti nahin karenge.R.P share de raha hai propritership nahin.koi to acha stock lo. pahle RNRL nahin lene diya.iam intrested in R POWER give me 500 shares@300/= any time till december 2008

Haha, that time RIL was offered at Rs. 10, here it's being offered at 45X premium whereas most of the shares of Indian marketplace trade at around 20X premium even in the live secondary market... A stock being offered at 45X premium right in the primary market is way too much...

REL was launched 3 years back, and still its in the development phase... All its promises are still pending and the project is delayed.

R P L is a huge planning and the real time of implementation is far much much more as compared to REL. Still these projects are based on coal supplies from the coal mines and water to run the aspired hydro power projects... Both are scarce resource... Mind you... R P L is not initiating a nuclear power plant!

Moreover, I even doubt on the overall profittability of these power projects... They are impressive in terms of their envisioned sizes but aren't impressive in terms of ROI... Take the example of Powergrid... Its still hanging between 140 and 155 since long time... whereas most of the other frontline stocks that were in that bracked along with powergrid have appreciated impressively in last 2 months! Powergrid is lagging too much! And don't expect a jump up in powergrid because nothing breakthrough is going to happen with these power based project other than steady secured earnings IN THE FUTURE based on investments and that too in low profit margins!

Look for high profit margin sectors... there your money will grow even 10 folds...

Regarding reliance power, there's one simple question in my mind... ITS GOOD TO COLLECT 11000 CRORES FOR THE PROJECT THROUGH IPO.... BUT NOT FOR THE AMBANI BANDHUS... I SAY... GIVE SHARES TO PEOPLE AT PREMIUM, BUT 45X????

I say,, they could have even collected 11000 crores by offering 112 crore shares to general public for Rs.110 rather than 28 crore shares to public at 45X at Rs. 450 each!

In this IPO offer, its clearly visible that overall, share holding of Ambanis will by 200 crores whereas of people will only be 28 crores... Poor people... truly...

And I believe this IPO offer is not to just collect money for the project, but this is only to HELP AMBANIS REMAIN THE BIGGEST SHARE HOLDERS OF THE PROJECT FOR ALL TIMES TO COME!

Important info on Reliance Power Project IPO from Hindubusinessline :

http://www.thehindubusinessline.com/...1350351100.htm

Good to read this post which presents a different opinion, contrary to all the hype about this IPO. Also, the argument has been nicely justified by quantifying the various aspects of this IPO.

I am not here judge but I still think, because of the interest this IPO has generated and the reputation of the Ambanis, this IPO will see listing gains.

xpected initial opening rates as per 2days reports.....800+

Hi Sanjay, Nobody is forced to apply for this IPO. Its upto an individual. So where is the question of fooling common people. Valuations per say is very subjective and debatable. If it suits u, invest, if no, leave it alone.

Hi, first time on this street,
If figures are correct then it seems SEBI is partnering with Ambani's but for what, we can assume. Just now going thru a news in "http://www.businessweek.com/print/globalbiz/content/nov2007/gb2007118_203521.htm" says SEBI is not capable of handling Foreign IPO's on Indian soil, it's true they don't control the market but they control by the market & if you see the history; Indian market is always controlled by the few people on the board not by the majority as it should be. Even though we the public wait for this type of issue every & now because ultimately the investor’s never loose their investment but if you will combined ethics with Ambani’s it’s our fault & don’t blame Ambani’s for that. Since beginning they are a kind of entrepreneur, where they are not bound by any rules, regulations & ethics; their target in first stage a huge profit, which they will not going to make in next ten years with their whole capital involved in their all other companies but with this issue, don’t believe, see this….
No. of shares 2,000,000,000 at Rs.10, total investment 20,000,000,000 plus interest @10% (they don't have CASH to purchase these share but our generous banks are) 3,000,000,000. Total share sold to Janta 280,000,000 Rs.@450, Janta's Investment 126,000,000,000 & Shares remain with Ambanis 1,720,000,000 Rs.@450; Value of Shares remain with Ambanis Rs.774,000,000,000 – NET PROFIT 883,000,000,000 an unbelievable figure even very difficult to count but it is.

Sanjay is saying "Janta ko BEVAKOOF SAMAJAH RAKHA HAI KYA?" YES you are right Indian Public (here investors) majority are governed by hypes, be politics, social life or personal life, who we are to advice any one. We the people of India are good & very generous to offer these kind of help to people like Ambani’s, so it’s mine & Sanjay’s fault who’s crying for nothing, even we not investing single rupee but creating a new hype, sorry Sanjay I am with you but I have to see majority’s mood too. By the way best of luck we will see “Janta’s generosity” with Ambani’s.
Their was a news from Economicstimes.com, who can speak against Ambani's if you want to be in the market, go with them but no it's not true, their are many & many but still our voice is not going to stop anyone. The world is like that "MONEY MATTER'S MOST", rest is on paper.

Hi, here is another observation of mine in case of Reliance Power IPO according to what I have seen and heard today :

Check out this : Could REPL follow in RPL’s footsteps post-listing...

In case of reliance power IPO, mass public has sold other stocks and have atleast left the bullish position today and we saw the market crashing today... Poor people, see when you're selling in panic, somebody is on the other side buying the same thing! Today people and institutional investors sold in huge so that they can take position in Reliance Power IPO today. The mob lost their stock holdings today + they gave opportunity in bulk for some other institutional investors most probably to get prospective stocks at low prices due to selloff mentality of all people in the mob... So conclusively, they lost and somebody to the opportunity to make money in those stocks in the short term in the coming future!

Another thing, if you go through the article above, then you find the market was moved upwards due to THIS IPO maybe by institutional market movers so that when THIS CURRENT sell-off takes place, they do not end up loosing their valuations... So they moved the market up... now its moving down... and as per the above article on moneycontrol, RIL may corrent to up to 30% from here IF the market has to go down truly and if the scenario right now is to duplicate the scenario that existed in case of Reliance Petro IPO!

Anyway, for now, just tell me one thing... now since most of the people have subscribed to Relinace Power IPO only because they believe and everyone belives it will get listed at 800+ and their investment will become double in one day... Most of the subscribers just want to offload their stocks and want to make money in no time as soon as the stock get listed and as they believe this stock will get listed at 800+ ... TELL ME WHAT HAPPENS IN THE REAL MARKET WHEN THERE IS A HUGE AMOUNT OF SELLERS OF A STOCK JUST READY TO OFFLOAD THEIR STOCK IN ORDER TO BOOK PROFITS AS EARLY AS POSSIBLE!

I believe the lobby of institutional investors, the market movers will remain calm for some time and will let the stock fall.... They would wait to fetch this stocks at true low prices in order to make long term real good profits by buying this stock at lows BECAUSE ALL EXPERTS TRULY ALREADY FEELTHIS STOCK IS OVERPRICED FUNDAMENTALLY... CHECK OUT THIS ARTICLE...

The voices of valuations etc. are totally lost; people back calculate from Rs 850-900. WHAT IF For some reason it does not quote at Rs 850-900, but only at Rs 500

The the calculation of the game...

Ambani bandhus have around 200 crores of this stock with them...

Now even if the stock gets listed at Rs.500, then if Ambani bandhus sell only 4 crore shares in the market, then they can recover their invested 2000 crores completely and the whole project will be with them for free!! They just encashed their reputation thats it!

You...me...and many other retail investors are minority in discovering the real price. There are many sattebaaz who'll take the price up and up for a month atleast....once they book profits...you and me will relax that this is a great buy and always booming and then we'll see the RELPOW at the issue price once again!