Mumbai: Reliance Energy Ltd said on Feb 26 that the company''s board will consider buyback of shares at a meeting to be held on March 5. The company was having cash reserves of over Rs 10,000 crore and the stock was undervalued and, therefore, it was decided to take the buyback route. It could infuse between Rs 1,000 crore and Rs 2,500 crore. The company prefers for a buyback, but in December 2007, the company had chose for Rs 8,000-crore equity capital infusion through a preferential offer. Reliance Energy Ltd, in a December 3 notice to the BSE, had said that company was preferring for capital infusion so as to take part in large-scale infrastructure projects, which will be soon open for bidding. The new equity capital will considerably enhance Reliance Energy''s net worth, and further augment its borrowing capabilities, to enable greater participation in these mega growth opportunities in high growth areas, thereby, generating superior returns for over 1.5 million shareholders. The promoters currently hold 34.68 per cent stake in the company, 63.99 per cent is held by the public shareholders, and overseas investors against depository receipts hold the rest of the stake.
Showing posts with label Rel. Show all posts
Showing posts with label Rel. Show all posts
Wednesday, February 27, 2008
Tuesday, January 22, 2008
REL Mops Up $2 Bn From Convertible Warrants
Reliance Energy Ltd has allotted 43 million warrants convertible into equity shares to group company AAA Project Ventures Pvt Ltd, thereby raising Rs 78.35 billion. The company has already received the amount payable towards allotment, REL announced in Mumbai on Monday.
REL will raise an amount of about Rs 78.35 billion from this issue, which will increase its net worth from Rs 103.2 billion to Rs 181.5 billion. The promoters'' equity stake in REL will increase from 34.7 per cent to 44.4 per cent, it was stated. Part of Reliance Anil Dhirubhai Ambani Group (RADAG), REL and its affiliates are engaged in several mega projects in power generation, transmission and distribution, as well as infrastructure development in areas such as highways, bridges, metro rail and real estate. A large number of new mega infrastructure projects are also soon being put to bid, to provide further impetus to the country''s rapidly accelerating economic growth.
RADAG currently has a market capitalisation of about Rs 3.4 trillion, net worth in excess of Rs 400 billion, cash flow of Rs 90 billion, net profit of Rs 50 billion and zero net debt. REL is ranked amongst India''s top 20 listed private companies in terms of all major financial parameters, including assets, sales, net worth, profits and market capitalisation.
REL will raise an amount of about Rs 78.35 billion from this issue, which will increase its net worth from Rs 103.2 billion to Rs 181.5 billion. The promoters'' equity stake in REL will increase from 34.7 per cent to 44.4 per cent, it was stated. Part of Reliance Anil Dhirubhai Ambani Group (RADAG), REL and its affiliates are engaged in several mega projects in power generation, transmission and distribution, as well as infrastructure development in areas such as highways, bridges, metro rail and real estate. A large number of new mega infrastructure projects are also soon being put to bid, to provide further impetus to the country''s rapidly accelerating economic growth.
RADAG currently has a market capitalisation of about Rs 3.4 trillion, net worth in excess of Rs 400 billion, cash flow of Rs 90 billion, net profit of Rs 50 billion and zero net debt. REL is ranked amongst India''s top 20 listed private companies in terms of all major financial parameters, including assets, sales, net worth, profits and market capitalisation.
Saturday, January 12, 2008
Rel Power Grey Prices Fall
The volatility in the market since last week is playing its part in the grey market too, where the Reliance Power is witnessing huge trading.
According to market players, the premium for RePL share in the grey market, which was trading in the range of Rs 410-425 a week back has dropped to Rs 350-360 on Friday.
Even the price for application worth Rs 1 lakh has come down from a high of Rs10000-10200 to Rs7000-7200 currently. This is despite the fact that investors are rushing to open demat accounts with brokerage houses and banks.
• Check out our Yearender Special
Market players say the recent volatility in the secondary market is suddenly raising doubts in investors’ minds about the valuations of the company.
The grey market price of Rs800-825 is giving a market capitalisation of around Rs1,80,000 crore to a company with no installed capacity and business on cards. The issue is opening on January 15, 2008 and is expected to list on the bourses in early February.
The current issue price warrants investors’ attention, as the company will be commencing its first project in FY09-10. Out of total project size of 28200 MW, which the company is expecting to complete by 2016, only 6000-6500 MW of power generation is expected to be commissioned by 2011-12.
According to analysts, even if the company is able to generate power worth 6000-6500 MW by 2011-12, it will have revenues of little over Rs7600 crore. This will give an earning per share of around Rs10, which will translate into a price earnings ratio of 80 on market price of Rs800.
But all these are assumptions, taking into consideration listing price as per grey market and company’s capability to earn revenues four years down the line.
This is far too in excess of current price earnings ratio of around 28 of the country’s largest power generator, NTPC, which already has generation capacity of close to 27000 Mw.
According to market players, the premium for RePL share in the grey market, which was trading in the range of Rs 410-425 a week back has dropped to Rs 350-360 on Friday.
Even the price for application worth Rs 1 lakh has come down from a high of Rs10000-10200 to Rs7000-7200 currently. This is despite the fact that investors are rushing to open demat accounts with brokerage houses and banks.
• Check out our Yearender Special
Market players say the recent volatility in the secondary market is suddenly raising doubts in investors’ minds about the valuations of the company.
The grey market price of Rs800-825 is giving a market capitalisation of around Rs1,80,000 crore to a company with no installed capacity and business on cards. The issue is opening on January 15, 2008 and is expected to list on the bourses in early February.
The current issue price warrants investors’ attention, as the company will be commencing its first project in FY09-10. Out of total project size of 28200 MW, which the company is expecting to complete by 2016, only 6000-6500 MW of power generation is expected to be commissioned by 2011-12.
According to analysts, even if the company is able to generate power worth 6000-6500 MW by 2011-12, it will have revenues of little over Rs7600 crore. This will give an earning per share of around Rs10, which will translate into a price earnings ratio of 80 on market price of Rs800.
But all these are assumptions, taking into consideration listing price as per grey market and company’s capability to earn revenues four years down the line.
This is far too in excess of current price earnings ratio of around 28 of the country’s largest power generator, NTPC, which already has generation capacity of close to 27000 Mw.
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