Reliance Power Limited IPO Message Board (Page 354)

18. Manish  Oct 9, 2007 14:58
Can anybody tell me how to buy from grey market, i mean alloted shares? Thanks
17. NDTV  Oct 9, 2007 10:28
Power Grid is also in to many business On...
Power Grid is planning a capex of USD 15 billion over the next five years, added Singh. It has 60,000 high voltage transmission lines and will double in five years

On networking:
India is a huge country, where variation takes place almost on a daily basis. So, by creating a national grid, we are able to carry power from surplus regions to deficit regions and we are the ones who help in grid reliability and stability.

On RoE targets:
As far as Power Grid is concerned, it is a regulated business. The maximum rate of return on equity we can get is to the extent of 16%, but nevertheless we have entered into a different arena of business- consultancy and telecom, that will boost up our return on equity, in the times to come.

On telecom business:
In telecom, we have provided 19,000 kilometers of optical fiber. With more demand coming in, in a very short period, we are establishing additional optical fiber.

On targets for the telecom business:
This year, for the first time in telecom, we will get substantial profits and will be able to wipe out our deficits. We had envisaged that after six years of starting this business, we will be earning profits, but we are getting profits a year ahead itself.

On consultancy business:
In the consultancy business, from the day you start, you get profit. Last year, we did consultancy worth about Rs 150 crore.

On capex:
We are planning to spend about Rs 55,000 crore or USD 15 billion, in the next five years time. The average RoE will be around 14.5%.

On power transmission lines:
We have 60,000 extra high voltage circuit transmission lines. We are going to double in the next five years. Physical work has already started for about 30,000 kilometers.

On business weightage:
Our principle job is transmission and telecom cannot substitute transmission. So, we will continue in transmission. But telecom is a synergy business. So, we are expanding in telecom also, &On debt equity ratio: and On Joint Venture:
16. CSB  Oct 9, 2007 09:50
I donot have a demat account. How do i do a manual appliaction on this IPO. Please suggest. Thanks in advance.
15. raj  Oct 8, 2007 16:44
pls go for it it is good issue
you can expect great new year by applying to the issue
-Allotment in retail is going to be almost 100% becouse issue is very big ie 130 crore share so retailinvester will get around 45 crore shares
-Prenium as of today is Rs 35/- per share (about 80% of expected price band as per Mr tulsian)

-Expected premium on listing can go up to 125% of issue price as reliance and ADAG are invester friendly
so friends arrange funds and apply for maximum number of shares
14. VJ  Oct 8, 2007 13:53
what could be the minimum no to share to apply for ..
i mean hw many one lot will ask for ...
13. Rajeshs  Oct 8, 2007 12:33
Reliance Power - The most eagerly awaited issue (By S P Tulsian)

Will it, won’t it? The curiosity of the media is finally vetted and the IPO details of Reliance Power have come out of the wraps. The much anticipated IPO to hit the Indian capital markets in recent times, is out for all to scrutinise and assess.

The company having filed its Draft Red Herring Prospectus (DRHP) with SEBI on 03-10-07, all the speculations have come to rest. The terms of the issue, size, object, project, means of finance, promoters contribution etc. are as under:-

Issue Size 130 crore equity shares of Rs.2 each, by 100% book built issue. This size is 11.5% of the total equity of 1,130 crore equity shares.

Promoters’ Contribution – 16 crore equity shares of Rs.2 each to be subscribed by the Promoters at the same price as being offered to the public. Reliance Energy Ltd. (RIL) and AAA Projects Ventures Pvt. Ltd. (AAA) being the joint promoters would be subscribing 8 crore equity shares of Rs.2, each.

Net Public Issue – 114 crore equity shares of Rs.2 each, shall be offered to the public, by a book-built issue.

Promoters – REL and AAA are the promoters of the company.

Post Issue Equity – Present equity comprising of 1,000 crore equity shares of Rs.2 each, being Rs.2,000 crores which shall rise to 1,130 crore equity shares, of Rs.2 each, for Rs.2,260 crores.

Promoters Stake – REL shall be holding 508 crore equity shares of Rs.2 each,being 44.95%, while AAA shall be holding 508 crore equity shares of Rs.2 each, being 44.95%. Remaining 114 crore shares of Rs.2 each being 10.10% shall be held with the public.

BRLM – Book Running Lead Managers to the issue are Kotak, UBS, ABN Amro, Deutsche Equities, Enam, ICICI, JM and JP Morgan while Co-BRLM are Macquarie Advisory and SBI Capital.

Listing – NSE and BSE.

Balance of Rs.25,431 crores shall be mobilized by way of term loan with Debt Equity ratio of 4 : 1. PPA entered for 4,560 MW for Project 1 and 4, for 25 years.

Projects in Pipeline –

1) 7,480 MW Gas based power project at Dadri

2) 3,960 MW Coal based at M.P.

3) 2,800 MW Combined Cycle Gas Fired at Shahapur

4) 1,000 MW Hydro at Siyom.

5) 1,200 MW Hydro Kalai II

6) 700 MW Hydro at Tato

17,140 MW

Cost of Project & Means of Finance for these projects, have not yet been worked out.

Summary of Power Projects-

6 Coal based – 10,620 MW

2 Gas based – 10,280 MW

4 Hydro based – 3,230 MW

12 Total 24,200 MW

Western India 12,220 MW

Northern India 9,080 MW

North Eastern Region 2.900 MW

Total 24,200 MW

Total cost of 12 projects are Rs.95,591 crores, which is to be financed by debt of Rs.76,473 crores in debt equity ratio of 4 : 1

Payment Facility – There are two payment method. Method 1 allows 25% on application and remaining 75% on Due Date and available to Retail and Non-Institutional category. Method 2 asks for full payment on application, available to Retail and Non-Institutional. QIB category needs to pay 10% only with application.

Background of Company – Incorporated on 17-01-95 as Bawana Power P. Ltd., name changed to Reliance Delhi Power P. Ltd. to Reliance E. Gen P. Ltd. to Reliance Energy Generation P. Ltd. to Reliance Energy Generation Ltd. to Reliance Power Ltd. with effect from 4th July 07.

Expected Band – As the company has estimated a fund requirement of Rs.6,148 crores plus fund for general corporate purposes and issue expenses, the same is estimated at about Rs.7,000 crores. Hence, price band could be between Rs.50 to Rs.55 per share, by which Rs.6,500 crores to Rs.7,150 crores can get mobilised, which is less than US $ 2 Billion.

Grey Market Premium – Grey Market Premium of Rs.32 to Rs.33 per share, over and above the issue price. Application premium is Rs.4000 per application of Rs.1 lakh.

Expected Time of IPO- Post Diwali, around 15th November, Labhpanchmi Day, which is considered most auspicious day, especially in Gujarat.

Implications – Probably the fastest filed DRHP where –

1) 8 BRLM are working.

2) DRHP filed on 03-10-07 with SEBI, with accounts incorporated upto 30-09-07 and directors appointed on 30-09-07.

3) Reliance Public Utility Pvt. Ltd. having merged with the company w.e.f. 30-09-07.

4) Face value of equity shares sub-divided from Rs.10 to Rs.2, w.e.f. 30-09-07.

5) The company must not have received confirmation for filling of various forms with Registrar of Companies viz. Form 32, Form 2, Form 23 etc.

6) 2nd October, being national holiday, otherwise the company would have filed DRHP on 02-10-07 itself. This must probably be a world record of having filed DRHP for raising over US $ 1.5 billion in just 1 working day.

7) This must be a costliest issue by any company, for its greenfield projects. Also, must be only issue where promoters stake of over 98% (1,000 crore shares out of 1,016 crores shares) has been issued at par.

8) Probably the only company having formed on the basis of the projects of existing company, which has stake of less than 45%, and despite that, all the projects which are now being executed, have been originated or conceived by REL.

9) Promoters in their individual capacity, acquiring about 45% stake of new company, virtually at par.

Boards of Directors – Anil Ambani, S. L. Rao, J. L Bajaj, Dr. V. K. Chaturvedi and Dr. Yogendra Narain. Expect for Anil Ambani, all are Independent Director and all were appointed on a single day viz. 30-09-07.

Financials – FY 07 – Total Income Rs.2.25 crores, PBT Rs.54 lakhs, and PAT Rs.16 lakh. For six months ending 30-09-07 total income was Rs.3.23 crores, PBT Rs.1.78 crores and PAT Rs.1.18 crores. Paid-up equity as on 30-09-07 Rs.2,000 crores and net worth Rs.2,006.91 crores. Average cost per share to promoters – Rs.2 (having issued entire equity at par) and NAV on 30-09-07 per share is Rs.2.01.
12. Ravi   Oct 8, 2007 09:58
I m new to stock market and I do not hold a trading account.
However I have a demat account.
Can I apply for an IPO at the last moment ?(ie. few hours before it closes)

I am told that I need to fill a form and send it by post to concern bank.
This process may take 3-4 working days. and if I send form on last day , I may miss this ipo.

Please be informed that I belong to a small town where chances of having concern bank branch is rare.

Please reply.
11. prasad  Oct 8, 2007 09:12
Can anybody suggest me can i apply two applications , one in demat and one thru manual application?
10. RAJ  Oct 8, 2007 08:59
Pl advise what is this "grey market prem. 5500-6000 on one lac appl.(type - 2 )"
alok mittal
9. alok mittal  Oct 8, 2007 08:40
reliance power
expected price band 88-92
exoected time first week of november
mode of payment
type - 1 25% on application balance on allotment
type - 2 100 % on application
grey market prem. 5500-6000 on one lac appl.(type - 2 )
alok kumar jain
8. alok kumar jain  Oct 8, 2007 07:55
just do whatever u can do to apply for this issue it will fulfill all ur dreams. plan well in advance as v have time to apply open new demat a/c arrange fund and do more planning to apply in nest power king
7. supertrader  Oct 8, 2007 02:37
Dont get too excited about this ipo, wait for the prospectus and prices to come out then only it will be clear how profitable it will be. There are concerns of mid-term polls, if that happens most of fii investors will backout with profit booking and market may fall... its better to wait and watch rather than getting excited from now.
ritu sah
6. ritu sah  Oct 8, 2007 02:13
I will seriosly think over the advice.also increase ur family demat a/c before IPO.price band tentatively 65-82 per share,also money in 25%,25% and 50% (like hindalco)
satish saubhash nagar
5. satish saubhash nagar  Oct 8, 2007 02:09
pl sell ur all stocks (except Reliance'Pack)of ur portfolio before launching this ipo ,pay revision adhoc ,wife's jwellery,laptop,mobile,pf refundable adv,dewali gift,furniture advance,fixed deposits.Its going to give infinite return just after listing;You may take risk of selling ur dream house before IPO....All d best
4. manish  Oct 8, 2007 00:05
as i heard range expected is 75-90 & with partly pay option
grey market premium is around 35,application 6000
tatya vinchu
3. tatya vinchu  Oct 7, 2007 23:48
Don`t avoid such kind of IPO
any new investor can enter bindassssssssss.
2. Ani  Oct 7, 2007 23:12
This is going to be an excellent IPO like Powergrid.

Expected Issue Price # Rs60 - Rs80.
Expected grey Market Premium # Rs 33 - 34.
Rattan Garg
1. Rattan Garg  Oct 7, 2007 22:55
the issue likely to come near 15-11-07. Range expected 50.00 to 60.00. a must subscribe issue.


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