Reliance Power Board to consider issuing free Bonus Shares

Reliance Power's IPO closed on January 18, 2008, receiving an overwhelming and record breaking response, with commitments of nearly Rs 7,50,000 crore (US$ 190 billion), from nearly 500 institutional investors across the globe, and 5 million retail investors. The sheer scale and unprecedented magnitude of the response clearly reflected the pricing of the IPO as being in line with prevailing valuation benchmarks and market sentiments.

Reliance Power has the world's largest shareholder family of nearly 500 overseas and domestic institutional investors, and over 4 million retail investors.

Reliance Power has a market capitalization of Rs 87,000 crores (US$ 22 billion) - among India's 10 most valuable private sector Companies, and a net worth of nearly Rs 14,000 crore (over US$ 3.5 billion) - among the top 5 private sector Companies in India on this parameter.

Reliance Power is implementing power projects with aggregate capacity of over 28,000 MW, by far the largest development pipeline in the country.

L&T secures Rs 311 crore (USD 78.8 million) order for 66/11 kV Substation works in Qatar

Larsen & Toubro Ltd (L&T) has announced that the Company has secured an order valued at Rs 311 crore (USD 78.8 million and QR 287 million) from the Qatar General Electricity and Water Corporation (KAHRAMAA) for the Design, Supply, Installation and Commissioning of five 66/11 Substations at Qatar, as a part of the KAHRAMAA PHASE VIII.

The Package consists of 66/11 kV Gas insulated switchgears. 11 kV Metal Clad Air insulated switchgears. 50/60MVA 66/11 kV transformers, Substation Control System, Protection Systems. DC System and auxiliaries. The contract also encompasses design and construction of Substation buildings together with associated utilities such as Air Conditioning. Fire Fighting and Lighting systems. All five substations are to be completed in a time frame of 27 months.

Jaiprakash Hydro plans to add 7,000 MW capacity by 2012

Jaiprakash Hydro Power Ltd plans to add 7,000 megawatts to its current annual capacity of 700 MW by 2012, a senior company official said. "We will add 5,000 MW in hydro and 2,000 MW in thermal," Director D.G. Kadkade said on the sidelines of an industry conference on Wednesday.

Reliance Power investors

Reliance Power at end of each year till 2016 will be:
2008: 0 MW.
2009: 0 MW.
2010: 1500 MW.
2011: 5500 MW.
2012: 5500 MW.
2013: 16980 MW.
2014: 22040 MW.
2015: 23040 MW.
2016: 28200 MW.
NTPC and Tata Power
NTPC has current capacity of 28000 MW and has target to achieve 66000 MW by 2017.
Tata Power has current capacity of 2300 MW.It will be adding 10000 MW of capacity more by 2012.
The interesting thing is at current price of Rs 1457, Tata Power is valued at just Rs 30000 crore. Remove Rs 10000 crore of investments and you can have it only for Rs 20000 crore.
Financials:
With 2300 MW capacity, Tata Power made standalone profit of Rs 700 crore in FY 2007.
With 28000 MW capacity, NTPC made standalone profit of Rs 6900 crore in FY 2007.
With 28200 capacity,
assume Reliance Power makes Rs 15000 crore of net profit in 2016-2017. Power companies are considered as utilities and worldwide trade at 10-15 times their earnings.Lets assume 15 times ratio for Reliance Power in 2016.
What will be its market value?
15000 X 15 = Rs 225000 crore or Rs 995 per share.
and you know In if we are assume 10 times profite 2016 NTPC
200rs x 10 = 2000 Rs per share.
and may be TATA POWER has
1200rs x 4 = 4800 Rs per share.

Reliance Power IPO Listing Details

BSE Script Code: 532939
NSE Symbol:RPOWER
Listing in: A Group of SecuritiesIssue
Price: Rs. 450/-
Face Value: Rs 10/- Per Equity Share

REC IPO public offering of 15.6 crore shares

Rural Electrification Corporation, REC, a state run company, is coming out with an initial public offering of 15.6 crore shares to raise nearly Rs 1404.9-1639.05 crore

Open :Feb19 close:Feb22, 2008.

price band : Rs 90-105 per share,

India's economic growth forcast - expected to be at 8.7% for 2008.

India's economic growth is likely to stand at 8.7% for 2008 thanks to slow expansion in industrial output, said a government estimate released on Thursday.

It said the economic growth has been hit by high interest rates, and sluggish agriculture. The Gross Domestic Product (GDP) had grown at 9.6% in 2006-07, which was the highest in 18 years.

"GDP at factor cost at constant (1999-2000) prices in the year 2007-08 is likely to attain a level of Rs 31,14,452 crore as against Rs 28,64,310 crore in 2006-07,'' it said.

The GDP grew at 9.1 per cent during the first half of this fiscal. It grew at 9.3 per cent in the first quarter and 8.9 per cent in the next three-month period. The advance estimates showed a further moderation during the rest of the year.

The estimated growth rate is slightly higher than the conservative RBI projection of 8.5 per cent, but less than 9.1 per cent, projected by economic think tank NCAER.

Finance Minister P Chidambaram had earlier exuded confidence that the economy will grow close to 9% during 2007-08. High interest rates have b and reduced demand for consumer goods, affecting ma nufacturing growth.

The manufacturing sector is likely to grow at 9.4 % during the fiscal as against 12% last year. The advance estimates revealed that agri and allied activities are likely to expand at 2.6 % as against 3.8 % in the previous year.