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Q.

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 on every 5 shares 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 share increases.any comments plz!

About: Company: Reliance Power Ltd.

Asked by Abhishek, 15 May '08 08:07 am
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Answers (4)

 
1.

The answers which are here are wrong. They are midguiding. Actually now 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 ve ...more
Answered by SENSEX, 26 Jun '08 07:26 am

 
  
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2.

The answers which are here are wrong. They are midguiding. Actually now 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 jo ...more
Answered by NAGARAJ, 15 May '08 12:08 pm

 
  
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3.

You are right, equity base will remain same as promotor is giving up their stake to public.
Answered by VIJAY PATIL, 15 May '08 10:47 am

 
  
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4.

To my knowledge, post bonus the share price will be adjusted to Rs.269 per share, as an example if one buys 5 shares for 400 total spend is 5*400 = 2000 + brokerage+tax etc., after bonus the value will be, 8 * 269 = 2152 - brokerage -tax. But if the share value declines to 225 or so after bonus, then networth = 8 * 225 -brokerage paid - tax = 1800 - brokerage -tax etc., so the investor will be making a loss of minimum of Rs.400 for 5 shares bought at Rs.400 for the sake of bonus. This may be the reason why people are ignoring rpower bonus. Suggest, you checkout, www.put-options.info for investment ideas.
Answered by rajarao, 15 May '08 09:39 am

 
  
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