Anil ambani is worried about Reliance Power stock price and also erosion of stock prices of other companies under his group. He now blames some hidden hands behind this fiasco. He is probably blaming Mukesh ambani for decreasing stock prices of all companies under ADAG.
Instead of utilizing the money he got via IPO in kick starting the projects, he is watching the stock prices on a daily basis just like a normal investor. This is pathetic. Let market forces decide the right price and instead he should be more worried about project execution now.
In order to put life into stock, promoters are coming up with unprecedented move of alloting free bonus shares. This again will be decided at Feb 24th board meeting. I am sure there will be few strings attached to it, if not, then they are admitting to the fact that their shares are over priced and are now correcting the same.
By doing this, they are safe guarding their 90% share (80%-90% after bonus shares).
If they don’t, then they have to painfully see the erosion of stock value and in future, when they need more money, they will have to place shares at much lower value bringing down the total enterprise value of Reliance Power as well as Reliance Energy.
This great Relance Power fiasco will also have bearings on proposed future IPOs from Amabani family.
No matter what percentage of free bonus shares they allot, iam waiting few more years to buy into Reliance Power story. As of now, the company is worth nothing, even though on paper, it is wrongly valued at thousands of crores.
Just stay away from all Reliance companies. They are utterly over valued.
Filed under: Finance India, India blogs, Indian Bloggers , ADAG, free bonus shares, IPO, MDAG, reliance energy, Reliance Power, reliance power free bonus shares, Reliance power IPO
