Reliance Power Limited IPO Message Board (Page 2)

Reliance(both groups included) has gone to dogs and its doomsday is only 15 years ahead if things continue like this.

I had applied for 225 shares amounting to Rs.25,875/-and allotted 17 shares. Balance refund of Rs.18,565/- not received till date. I have made lot of correspondece with M/s KCPL but till date they have not remitted my balance refund.

I have received Rs.79.58 in my ICICI account through ECS from R Power.

RPower to replace Dr Reddy`s in Nifty
Reliance Power will be included in the National Stock Exchange`s (NSE) 50-share benchmark index Nifty, replacing Dr Reddy`s Laboratories, with effect from September 10, reports Business Standard.

At present, Reliance Power has a market capitalization of over Rs 360 billion, while Dr Reddy has a market valuation of Rs 99 billion.

Reliance Power had raised about USD 3 billion from its initial public offer which had hit the market in January.

Shares of the company declined Rs 15.05, or 8.89%, to end at Rs 154.15. The total volume of shares traded was 7,269,345 at the BSE (Tuesday).

Sourced :- http://www.business-standard.com/common/storypage_c_online.php?leftnm=10&bKeyFlag=IN&autono=42158
The Securities Appellate Tribunal (SAT) has dismissed an appeal seeking a probe into the pricing of Reliance Power's IPO alleging that the public shareholders were charged a high premium.
The main prayer of the appellants, a Rajkot-based investors' association, was that the IPO be stopped since it had become infructuous as the public issue had gone through on orders of the Supreme Court, SAT said.


The tribunal has given its ruling with regard to issues like promoters acquring shares in the company at face value while the public shareholders were charged a high premium.

Guys,

I have shares at ipo, so what is the buying price after bonus of reliance power. Please provide ur inputs for the same.

Reply to 7034 Mr. Shailk,
You have to allocate the shares for trading. The bonus shares must have been credited but not yet allocated (by you) so they are nor showing up to you

7044. Ashok
bonus shares already credited to our demate accounts so please check youer demate account. and hold RPOWER for 1yr you will get good return, now it is coming down with market no any other reson to coming down if you have further fund buy rpower at every decline one day it is going to give POWER to INDIA

i applied 225 lot reliance power shares i send 25875/ rs cheque but i dont get share or refund money also now. what should i do now.i m sending u all my details pls cheque and send it my refund also. applicant name- rupwanti gianani applied shares 225 dmata/c no 1201320000847285 and cheque issused by pnb bank cheque no. 094144 application no. 18428230 submitted by TKL investment ajmer pls cheque and send itimmediately.

Hi Raj Durga & Vivek Bhauka !
Could you pls advise whether to hold this shares or to book loss. coz i bought this shares for 272 ( avg price after considering bonus issue ) & now its trading at 145 and its going low everyday..

Also tell me when bonus shares will come to ourdemat, i bought 65 shares at 420 RS. I am entitled for 39 bonus shares but my demat still shows only 65 shares in RPower..
Pls avoid any technical terms..

kya baat hai bhai mujhe chor kyun keh rahe ho, main chor nahin mera baap chor tha,mera bhai chor hai main to DAAKU hun DAAKU.maine tum sabko loota hai lekin tum phir bewakuf banoge jab main ya mera chor bhai apna koi ipo layega aur ham phir se lootenge tumhe.agar bachna chahte ho to aaj saugandh lo ki kabhi bhi reliance ki kisi cheez par bharosa nahin karoge,rmobile chor company,rmoney third class online brokerage company,rpetrol ne logon ko sadak par la diya ab aur kya karwakar manoge tum log batao hum wohi kar ke dikha denge, cheers.ek advice de raha hun janta hun tum manoge nahin lekin tab bhi de raha hun ,age se reliance aur usse judi har cheez se 50 kos dur rehna

7041. Vivekbhauka
If we consider ur calculation then even single share is not available in nifty and sensex (frontline stocks), all nifty and sensex shares that are trading more than 10 times of their actual valuation that is open secrete, evrybody those who are investing shares knows that even all are investing in that frontline stocks !!! you know why? becoz of demand and market price appreciation ,when demand comes nobody goes to fundamentals and valuation, we are all looking only on brand name and volume see when sensex at 21000 then volumes are huge but now when sensex is below 15000 volume decreasd now at current market condition volume is veryyy low becoze price is low and there is no demand so at this time youer way of picking shares is good but it is only for dividend earning shares not for frontline shares becoz if you go to dividend earning shares in that there is no market price appreciation you get only dividend so on your way of thinking you are rigt but in practical it is difficult but not impossible, 2 yr back did you imagind semsex at 21000 if you really talk only about book value then deffinetly not., for eg what is the difference between gold and steel ? both are metals one is soft metal another one is hard metal but why ? gold is trading at 1200/grams and steel at 50rs/kg? what fundamental have gold ?any earnig you get by gold? ans is no but even gold have demand becoz of its price, imagine that if gold is available at 50rs/kg then nobody wants gold . NOW come to RPOWER who told you rpower is now not working?? when forming rpower Anil Ambani transferd some power projects from REL TO RPOWER THAT projects are 70% compleated, by next year end they start production of power we need not to wait 4 to 5 yr to get eps, rpower already working see its last quarter result.http://bseindia.com/qresann/detailedresult_cons.asp?scrip_cd=532939&qtr=57.5&compname=Reliance%20Power%20Ltd&quarter=MC2007-2008&checkcons=55c rrpower made profit of 873 crores for end of march 31 2008 . and we have to wait 4 yr for rpower to compleate its total 28000mw power plant now calculate its eps for 239cr equity with profit of 873crores im talking about rpower's present condition not after 4 yr ., when rpower compleats total 28000 mw power plant then its total asset becoms 140000cr you are talking only 12000 cr that is collected by ipo will ANIL AMBANI keep quite in this rpower promotercontribution 90% also there so if you add 90% of promoter investment then total asset affter compleation of project it becomes more than 14000cr http://www.reliancepower.co.in/html/subsidiaries.html

hi durga

well book value and market cap comparision is is very vague...are u a financial student???????
suppose i have a small co ..one lac eq capital.a power co...but i can have a book value of 62 ok.......will it be a one lac cr company looking at ntpc.....never.u need to be a financial person to analyse all this...its so easy still people are so fool to buy r power at 400 premium ie at 800 rupee....

look.book value is simple the amount the company has per share....book value multiple by no of shares will give net worth....now if b/v of ntpc is 63 as u say...than it has to earn 14% on 63....may be 8-9 rupee per share...i think that will be the eps of ntpc(i havent gone throush real dats recently ok)but it will work like that...
but r power b/v is 60...but co is not working...so no eps for 3-4-5 yrsok....but when it willl start generating power simple see the book value then...it will be around 70-80 rupee then ok...and if it can manage 20% roi then eps will be around 15-16...simple.20% multiplied by book value....it will be same thing as reserves multiplied to roi is 20%...ok.....

the fact and fig of r power and ntpc im not updated...but that will work like that...

also the power generation capacity of a co depends on its balance sheet size....a power co will work on 70
% debt and 30% equity including reserves(own money in other words net worth..ok)

so simple a power generating co will be guaranteed a 14% return on its net worth by government...meaning if u have 1000 rupee of ur own u can earn 140 rupee...ok.

so if rpower has 12000 cr rupee now it can earn 2400 cr if it can earn 20% roi on optimist scenerio.so calculate accordingly....

power stocks are richly riced and will fall...

boss if i go by fundamentals i think many stocks will become one forth from here still...bhel,larsen turbo many real estate stocks(but i dont know how to value them)ok....so i stay away from them.....
i understand banks,power stocks.

7038. Vivekbhauka
i really appreciate ur way of investing and fundamentally picking stocks..as you told RPOWER book value is only 60 rupee...after 5 yrs it will have b/v of say around 80 rupee.( by comparing with its peer group companys cmp vs book value)
power stocks should trade at price to b/v of around 1.5 to 2.,but at current market all frontline power stocks (eg--NTPC , TATA POWER ,BF UTILITY ,JINDAL STEEL & POWER ,POWER GRID, Neyveli Lignite )are trading at 3 to 6 times of their book value so at an average of 4 times of their book vale ntpc at 2.6 times of its b/v, ntpc have a book value of 63 rs and net asset value /share is 89 but at cmp its market cap is more than 133000crs so when we compare b/v with cmp we should consider market cap also so according to ur calculation by compartion with its peer company, if we compare ntpc market cap,b/v and cmp with RPOWER ( rpower also have a b/v of 60rs even before starting production, just 3 rs less than ntpc, but at cmp rpower market cap is 38000crs )also must have marcket capitalisation near to NTPC's marcket cap so to get that marcket cap rpower price now must be nearly 525rs (rpower total share is 239 crs)so anithing below 525rs rpower is very good to invest then how you say that it's price valuation should be 60-70rs that also by comparing it with it's peer group any way if it available at 60-70rs it is golden opertunity to buy rpower but it is not its actual valuation if we compare with it,s peer at cmp as YOU TOLD and it is not bad to wait till 70rs it may come

APPLICATION FORM NO.-24758182
DEMAT NO 1203160000197256
SAHARE-30
ALLOTMENT-NIL
PAYMENT METHOD-1
CHEQUE NO.949501
BANK NAME-P.N.B.
DATE-18\01\08
AMOUNT-3450
NAME-RAEJSH MALVIYA
ADD.-HNO 73 IN JHUGGI SHANKAR NAGAR~NEAR WATER TANK
BHOPAL~MP

hi rajdurga,,

i appreciate ur calculations...but u sais eps at 110...i have my reservations...at 20% returns on net worth on 12000 it comes to 2400 cr profits per year.but the equity capital is 2400 of r power..hence eps of 10 when i assume that 9000mv completion with its 12000 cr reserves and 24000 loan (going by 1:2)debt equity for a standard power project...
hence with 12000 reserves r power can only go upto 10000 mv unless it uses internal profits(which starts only after 3-4 yrs)or fresh issue of shares....that means that to complete 30000 mv it does not have financial muscel now as standard for a power project is 1:2,and one mv costs around 3 cr rupee.

again when 14% returns are fixed by goi that means that in a high interest rate scenerio its bad to hold power stocks where returns fixed at 14%...r power in privats so it can have 20%...but high interest rates briong down p/e multiples of fixed return generation sectors(industry,companies)its a economic fundemantal....as im a student of economics and accounts.

that means at 14% roi the ideal p/e for the sector is 100/14 ie around 8 times.....for a power co growing at 14%....r power is different,anyways.but still it has a book value of 60 rupee now....i dont know much what will be book value after 3-4 yrs...but i think it will be about same (plus interest earned by co if any)...so when r power will complete 10000 mv it will have eps of 10...and that is 4-5 yrs hence.

so why will i give more than 60 rupee now for something which is around 120 rupee after 4 yrs.unless new developments come in....u may still add a reliance brand premium to 60...so 80.ok.i will be interested only below 80....and if bear mkts remains i will be buying it at 40-60....its only that way i make money because i wait for a full cycle to trun...from a bear market to bull market...(approx 4-5 yrs)and then only sell my holdings slowly....that is my way of investing and fundamentally picking stocks.....

7035. Vivekbhauka
When Rpower issued IPO of 10% stake in the company, all the analyst recommended everybody to buy at 450 Rs per share, it got over subscribed and was phenomenal success, and they even predicted that it will go above and beyond 800 or 1000, without thinking that its market cap was already 80,000 + crore at IPO price.

At the time of IPO
ADAG owned 45%
Reliance Energy owned 45 %
Retail Investors owned 10%

Out of which the promoters mutually gave 6 % stake as bonus to retail investors, and the % given by Reliance Energy is compensated by ADAG.

Now every analyst is recommending to sell at 215 Rs a share when the market cap is 48,607 crore ......they are considering it to be a stock split or a like a regular bonus.....but the fact is this bonus is a transfer of shares from ADAG group to the retail investors.....before the retail investors owned 10 %, they got 6 % transfered from ADAG and now they own 16 % stake.

By doing a small calculation you will know that
ADAG lost approx about 57% value and you should also have to keep in mind that ADAG also owns stake in REL, which owns 45% on Rpower and it lost 50%

So how much did ADAG loose, do your calculation and you will know that Anil Ambani will not make it on the top 10 billionaires list next year.

If I came 6th last year and trying to make it in the top 5 next year and if I know I wont even make it in the top 10 list next year, I will be pissed and do some thing about it.

7035. Vivekbhauka
Reliance power had announced 3:5 of bonus for the entire public. Please note that the promotors (REL/ADAG) will not get this bonus. That means, though the bonus lokks like 6o%,the actual increase in equity will be only meagre 6 % when compared to origincal total equity. Therefore, as per as valuations is concerned, the stock should trade at 6 % discount to the Cum Bonus price and this was what ADAG expected. contrary to that, the traders (who doesn't understand the basics) had discounted the share price more than 60% after may 29 i.e ex-bonus. Secondly, which is most important for the valuations of the company, power sector operates under the scanner of the regulator, who assures 14 % post return on equiy and chances of more returns for efficiency in O&M, availability of the plant beyond 80%. Therefore, Relianc Power will get atleast 20% ROE which itself is 2400 Crore ( 20% 12,000 Crore Equity raised from public) means 110 EPS upon the present equity. Now tell me at what PE one should look this stock???? will it be 15 times or 25 times??? if this happens , the stock should atleast value in the range of 1500 Rs to 2500 Rs

its book value is only 60 rupee...after 5 yrs it will have b/v of say around 80 rupee.
power stocks should trade at price to b/v of around 1.5 to 2.hence after 5-6 yrs r power should be 160-200 rupee.

so back calculation at todays price makes it a buy at 60-70 rupee now.which it will come surely...im waiting for that

I have not received my bonus share of reliance power till date, even I got SMS from NSDL on dated 14-6-2007 "your bonuse share credited in your demat A/C" but till date there is no display more share in my demat. so what can i do about this..please give me positive guidunce.