Reliance Power Ltd, which raised Rs 11,562 crore in its IPO in January last, has temporarily parked almost the entire money in mutual funds. The 2007-08 financial results declared by the company on Monday show that Rs 11,412.81 crore is invested in mutual funds. The company has not disclosed either the funds or the schemes where the money has been invested.
The IPO offer document says that the company “intends to invest the funds from the issue in interest bearing liquid instruments including deposits with banks and investments in mutual funds. These investments may include investments in mutual funds managed or financial products sold by one of our affiliates, RCL (Reliance Capital)”
The company has spent only Rs 25.83 crore as of March 31, 2008 in construction and development of its various projects.
The temporary parking of the IPO money in mutual funds has helped the company report a net profit of Rs 94.6 crore for 2007-08. Total income for year stands at Rs 132.8 crore, of which dividend income is Rs 112.7 crore.
The company has also informed that from March 31, Coastal Andhra Power Ltd, Reliance Coal Resources Pvt Ltd, Sasan Power Infrastructure Pvt Ltd, Sasan Power Infraventures Pvt Ltd, Maharashtra Energy Generation Infrastructure Ltd and Coastal Andhra Power Infrastructure Ltd have been incorporated as wholly owned subsidiaries.
On the BSE, the scrip was traded at Rs 403.25, an increase of 0.27 per cent over the previous closing of Rs 402.15, reports The Hindu Business Line.
Source: Moneycontrol.com
Showing posts with label Reliance Power Ltd. Show all posts
Showing posts with label Reliance Power Ltd. Show all posts
Tuesday, April 29, 2008
Sunday, February 24, 2008
Reliance Power Ltd sets 3-for-5 bonus share
Reliance Power Ltd on Sunday set a 3-for-5 bonus share issue in an attempt to cheer shareholders after a miserable debut following a record $3 billion initial public offer.
Shareholders other than the founders will receive three bonus shares for every five held, effectively reducing the cost of the shares to Rs 269 for retail shareholders compared to a discounted IPO price of Rs 430.
For institutions, the bonus issue would cut the price to Rs 281 a share compared to an IPO price of 450 rupees.
Chairman Anil Ambani on Sunday said he was also giving up 2.6 percent of his shareholding in Reliance Power to Reliance Energy Ltd, which owns about 45 per cent in Reliance Power, so its ownership structure remains intact.
A proposed IPO for another group company was on track subject to market conditions, he said.
"We've seen very turbulent conditions in the global and Indian capital Markets," he said at a news conference.
"The Reliance Power IPO closed at a time when the market was close to an all-time high. But clearly, since then there has been turbulence in the Markets," he said.
"After considering these adverse changes, we have decided on a bonus issue to protect the interests of long-term investors."
The Reliance Power offer was fully subscribed within a minute of its opening and had attracted bids worth $190 billion from over 4 million investors in January, just days before stock Markets worldwide went into a tailspin.
India's benchmark 30-share BSE index is down 18 per cent from a record high of 21,206.77 hit on Jan. 10.
Shares in Reliance Power dived 17 per cent on their trading debut on Feb. 11.
News that the company would consider bonus shares or other measures had lifted sentiment last week. But at Friday's close they were still more than 7 per cent below the IPO price.
The slump in Reliance Power, a unit of the Anil Dhirubhai Ambani group, had irked investors who complained they were lured to invest by promises from the firm, which has no operating power plants and is unlikely to report strong profits for five years.
The company has reminded investors that there were risks attached to equity investments, and has said its shares were hit by weak market sentiment. It also blamed unidentified rivals.
The turbulent market has recently forced three firms to shelve their IPOs, including a $1.6.
Source: Financial Express
Shareholders other than the founders will receive three bonus shares for every five held, effectively reducing the cost of the shares to Rs 269 for retail shareholders compared to a discounted IPO price of Rs 430.
For institutions, the bonus issue would cut the price to Rs 281 a share compared to an IPO price of 450 rupees.
Chairman Anil Ambani on Sunday said he was also giving up 2.6 percent of his shareholding in Reliance Power to Reliance Energy Ltd, which owns about 45 per cent in Reliance Power, so its ownership structure remains intact.
A proposed IPO for another group company was on track subject to market conditions, he said.
"We've seen very turbulent conditions in the global and Indian capital Markets," he said at a news conference.
"The Reliance Power IPO closed at a time when the market was close to an all-time high. But clearly, since then there has been turbulence in the Markets," he said.
"After considering these adverse changes, we have decided on a bonus issue to protect the interests of long-term investors."
The Reliance Power offer was fully subscribed within a minute of its opening and had attracted bids worth $190 billion from over 4 million investors in January, just days before stock Markets worldwide went into a tailspin.
India's benchmark 30-share BSE index is down 18 per cent from a record high of 21,206.77 hit on Jan. 10.
Shares in Reliance Power dived 17 per cent on their trading debut on Feb. 11.
News that the company would consider bonus shares or other measures had lifted sentiment last week. But at Friday's close they were still more than 7 per cent below the IPO price.
The slump in Reliance Power, a unit of the Anil Dhirubhai Ambani group, had irked investors who complained they were lured to invest by promises from the firm, which has no operating power plants and is unlikely to report strong profits for five years.
The company has reminded investors that there were risks attached to equity investments, and has said its shares were hit by weak market sentiment. It also blamed unidentified rivals.
The turbulent market has recently forced three firms to shelve their IPOs, including a $1.6.
Source: Financial Express
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