Reliance Power, part of the Reliance Anil Dhirubhai Ambani Group, develops, constructs and operates power projects domestically and internationally. RPWL on its own and through its subsidiaries is currently developing 13 medium and large sized power projects with a combined planned installed capacity of 28,200 MW. Its project sites are located in western India (12,220MW), northern India (9,080MW) and northeastern India (2,900MW) and southern India (4,000MW). It includes six coal-fired projects (14,620MW), two gas-fired projects (10,280MW) to be fueled primarily by reserves from the Krishna Godavari Basin and four hydroelectric projects (3,300 MW), three of them in Arunachal Pradesh and one in Uttarakhand. RPWL has acquired the two ultra mega power projects of 4,000 MW each at Susan in Madhya Pradesh and Krishnapatnam in Andhra Pradesh. The 7,480 MW project to be located at Dari in Uttar Pradesh is expected to be the largest gas-fired power project at a single location in the world. These power is been supplied to state-owned and private distribution companies and industrial consumers under a combination of long-term and short-term Power Purchase Agreements (PPA).
Anil Dhirubhai Ambani, Non-Executive Chairman, Reliance Power. He holds a Bachelor?s Degree in Science from the University of Bombay and a Master?s Degree in Business Administration from The Wharton School, University of Pennsylvania, USA. Mr. Ambani is also the Chairman of Reliance Communications 141 Limited, Reliance Capital Limited, Reliance Energy Limited and Reliance Natural Resources Limited. He is a member of the Wharton Board of Overseers, The Wharton School, USA, the Central Advisory Committee, Central Electricity Regulatory Commission, and the Board of Governors of the Indian Institute of Management (IIM), Ahmedabad and the Indian Institute of Technology, Kanpur (IIT), and Executive Board, Indian School of Business (ISB), Hyderabad.
Anil Mascarenhas reports the highlights of a media meeting where Anil Ambani says,? Retail shareholders have continued to buy Reliance Power shares at the lower levels and have increased their holding.? The Power of bonus
There was intense discussion about ways to compensate investors. Since the loss was largely due to adverse market conditions over which the company had no control, some members felt that there was no need to do anything. I have been personally concerned by the notional losses arising for millions of our investors as a result of a dramatic adverse change in sentiment in global and domestic capital markets after the pricing of our IPO. The board endorsed my concern and approved the bonus issue. Though equity shares are by their very nature risk-bearing instruments, nevertheless, we have taken these one-time and unprecedented measures today, in demonstration of our philosophy of endeavoring to protect and enhance value for all our long-term shareholders.
Reliance Power will offer three bonus shares for every five held in order to reduce the cost of acquisition for investors who had bought at the time of the IPO. The bonus shares will be issued to all shareholders, except the promoter groups.
Gift for Energy
I will transfer 2.6% of my personal stake in R-Power to REL in order to compensate the company for the dilution of its stake in R-Power. The move is to ensure that REL?s shareholding remains unchanged at 45% in R-Power even though it has declined to accept the bonus issue.
(Mr Ambani?s shareholding in R-Power would reduce by 5% to 40% in Reliance Power.)
Cost to the retail investorThe cost of acquisition of R-Power stock would be around 40% less for retail shareholders and 37% less for others. Retail shareholders increase
Reliance Power has the world?s largest shareholder family of nearly 500 overseas and domestic institutional investors, and over 4 million retail investors. It is not the retail shareholders who have sold their shares post-listing. In fact, retail shareholders have continued to buy Reliance Power shares at the lower levels and have increased their holding by 25mn shares post-listing, till date.
Price hammeringWe have been maintaining that there has been a consistent hammering in the RPower stock post-listing. The stock got listed at Rs 540 and within four minutes was trading at Rs 380 on the day of listing. I can understand people selling when the price is going up. But there is more to this than meets the eye. Sebi has all the data with it and we hope it will take up this matter for investigation.
After Power, it?s TowerThere's no rethink on the IPO (Reliance Infratel).