रिलाइंस पॉवर बोनस

Scrip Code:532939 Company Name:RPOWER News Subject: Reliance Power Board approves free Bonus in Ratio of 3:5 to all shareholders (excluding the Promoter Group)

News Body:

Reliance Power Ltd has announced that the Board of Directors of the Company at its meeting held on February 24, 2008, has approved a proposal for issuing free bonus shares to all categories of shareholders, excluding the promoter group (comprising of Reliance Energy Ltd. and the ADA Group), in the ratio of 3 shares for every 5 shares held, subject to necessary approvals. The proposed bonus offering will result in reduction of the cost of Reliance Power shares below the IPO price as follows: Rs 269 per share for retail investors, 40% lower than the IPO price of Rs 430. Rs 281 per share for other investors, 37% lower than the IPO price of Rs 450. In a related development, Mr. Anil D Ambani, Chairman, Reliance ADA Group, on February 24, 2008 simultaneously announced a voluntary contribution of 2.6% of his shareholding in Reliance Power to Reliance Energy Ltd., to protect the Company from any dilution of its existing 45% stake in Reliance Power, as a result of the bonus proposal. Accordingly, Reliance Energy's stake in Reliance Power will be maintained at the existing level of 45%. The reduction of Mr. Ambani's shareholding in Reliance Power by 5% from 45% to 40%, represents a contribution of nearly Rs 5,000 crore (US$ 1.2 billion) by him, in favor of nearly 6 million investors in Reliance Energy and Reliance Power. Commenting on the move, Mr. Ambani said, "I have been personally concerned by the notional losses arising to millions of long term investors in Reliance Power, as a result of a dramatic adverse change in sentiment in global and domestic capital markets, subsequent to the pricing of our IPO. 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." Based on the proposal for issuance of bonus shares, the paid up share capital of the Company will stand increased to 239.7 crore equity shares of Rs 10 each. 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. 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 over Rs 94,000 crores (over US$ 23 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.

ऐसा कहते सुना है...........

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Cubex Tubings manufactures copper and copper alloy products-seamless tubes, bus bars, rods etc which find application in core industries of power generation, refineries, ship building, defence, railways etc. The company is almost debt free, having B.V. of Rs 49, trailing 12m EPS of Rs13.5 and has blue chip clients like Siemens, NTPC, GE Power, SAIL, Kirloskar Electric and others. After the recent correction the stock looks very good bet for medium-term target of Rs 150 at current levels.

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Sadbhav Engineering is one of the leading construction companies operating in the business verticals of construction of roads and highways, irrigation and mining operations. Apart from the huge order book of Rs 2,600 crore in roads, highways and irrigation works, the company has reportedly bagged large orders in mining operations from GHCL and GMDC. It is also setting up lignite based power plants for Ultratech and Neyveli in Gujarat. Bonus or stock split predicted in near-term. Buy on declines for steady gains in medium-term.

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Maintenance, repair and overhaul segment of the aviation industry is expected to grow at 10 to 12 per cent CAGR. Dynamatic Technologies and Taneja Aerospace are the two listed stocks in this segment. Biggies like Lufthansa in association with GMR, Boeing, ATR and others are also planning to set up MRO facilities. Dynamatic Tech is Asia's largest producer of hydraulic gear pumps and has division of airframe structures. Taneja has recently tied up with France's Sabena to develop MRO facility. Buy both the stocks on sharp decline for good returns in long-term.

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Select stocks in textiles and logistics sectors like Gokaldas Exports, Bombay Rayon, S. Kumars, Allcargo, Balmer Lawrie, Sical and Gateway Dist are attracting buying interest. Rumours of revised open offer are doing rounds in Gokaldas. Blackstone holds nearly 70 per cent of the equity. Punters tip price of Rs 300 in short-term. Post commissioning of their new facilities, Bombay Rayon and S. Kumars are expected to stitch good numbers in coming quarters. Buy on declines. Blackstone's interest in Allcargo shows the importance of logistics space. Stay invested in logistics stocks and use current weakness to buy.

रिलाएंस पावर बोनस

Rel Power has decided to issue 3 bonus shares for every 5 shares held...

Maruti might bleed tomorrow --

NEW DELHI: Korean car major Hyundai on Wednesday said it has got approval for supplying vehicles to government institutions for the first time since it set up shop in India in 1996. The mid-sized sedan Accent GLE, has been selected by the Government of India for its fleet of official cars, Hyundai Motor India Ltd (HMIL) said in a statement. The Directorate General of Supplies & Disposals in the Department of Supplies under the Ministry of Commerce, the central purchase and quality assurance organisation of the Union Government, has approved the Accent GLE for use by all government departments across the country, it added. Commenting on the development, HMIL Senior Vice-President,Marketing and Sales, Arvind Saxena said it is a welcome acknowledgement of the company's products. "This government supplies is an important market for us and the Accent is the right product for this category of users with its compact size, high fuel efficiency and time tested performance," he added. With this, Hyundai Motor India, which currently sells around 1,000 units of the Accent GLE a month, expects to increase the user base of the sedan, the statement added. The Accent will be supplied to all government agencies at the Union and state levels at a special rate, it said without specifying details. The DGS&D is also currently evaluating the Hyundai Verna and Sonata models for registration as approved automobiles for acquisition by government bodies, it added.

ख़बर है कि.........

* Morgan Stanley units are a good bet in the volatile market. The fund is converting to an open ended fund soon. * Asian Oilfield services is at an attractive price level considering its future earnings potential. * Companies with open offer are a good bet. Check out on Lanxess ABS, NDTV for risk-free investments. * Budget could spur low budget realty growth. Eldeco and Ashiana Housing are good bets in this sector. * Ennore Coke looks good in view of the buoyancy in the coke prices worldwide. The scrip could race past Rs.150 mark in the next 6 considering its Metallurgical Coke project this months and power project next month. * Phoenix International Ltd. has come up encouraging Q3 numbers and looks highly undervalued at Rs.29. * Important developments are on in NEPC India Ltd. and the stock is already in the upper circuits.

Reliance Power board considering free bonus shares

New Delhi (PTI): In an unprecedented move, Anil Ambani Group company Reliance Power will give free bonus shares to all its shareholders to compensate the losses they suffered when the company was listed a week ago.

"Reliance Power board will consider issuing free bonus shares to all shareholders excluding the promoters," a group spokesperson said.

On the day of its listing at Rs 547.8 a share, Reliance Power performed miserably at the stock exchanges and closed the day nearly 32 per cent lower.

The IPO had attracted a total demand of about Rs 7,50,000 crore and the company had issued the shares at Rs450 while giving a discount Rs 20 a share to retail investor.

In the face of previous disappointment among investors, group chairman Anil Ambani is believed to have taken this unique step to win over the investors and give a message that in an Ambani company shareholders would not lose.

"The move by the Reliance Power board will reduce the cost of acquisition by shareholders who had helped the company mop up Rs 11,560 crore through IPO," the spokesperson said, adding that the promoter group would accept the dilution of their stake due to the issuance of free bonus shares.

The move would help over four million shareholders of the group, the spokesperson said. Prior to over 10 per cent equity dilution in Reliance Power through IPO, Anil Ambani and his group company Reliance Energy were the equal stake holders.

On the day of the listing, retail investors had lost a total of over Rs 475 crore, while FIIs suffered over Rs 800 crore.

A board meeting of Reliance Power would be held next Sunday, February 24, to consider issuance of free bonus shares, the company informed the stock exchanges today.

"From the time of opening of initial public offer of Reliance Power on January 15, the Sensex was down 13 per cent while the Reliance Power stock was down 11 per cent from the IPO price for retail investors, and 15 per cent for other categories of investors," the company said in a statement.

The company said that the decline in share price has been compounded by "a vicious and orchestrated campaign of market manipulation and market abuse unleashed by rival corporate interests," it said.

The campaign was to hammer down all Reliance ADA group stocks in an attempt to undermine its fair name and reputation and cause losses to millions of genuine investors, the statement added.

Reliance Power has formally written to market regulator SEBI seeking an investigation into the same.

Adarsh Derivatives/ Vikas Granaries

Scrip code : 531518 Name : Adarsh Derivatives ltd.

Subject : Adarsh Derivatives - Updates on Outcome of EGM

Adarsh Derivatives Ltd has informed BSE that the members at the Extra Ordinary General Meeting (EGM) of the Company held on January 11, 2008, inter alia, have accorded the following: 1. Increase the Authorised Share Capital of the Company from Rs 17,00,00,000 (Rupees Seventeen Crore) divided into 17000000 (One Crore Seventy Lacs) Equity Shares of Rs 10/- (Rupees Ten) each to Rs 31,00,00,000 (Rupees Thirty One Crore) divided into 31000000 (Three Crore Ten Lacs) Equity shares of Rs 10/- (Rupees Ten) each & consequential amendments in the Memorandum & Articles of Association of the Company. 2. Authority to the Board to create, issue offer and allot equity shares / Convertible instruments, whether optionally or otherwise, with or without detachable warrants ("Securities") up to an aggregate amount of Rs 85 crores (Rupees Eighty five crores), for cash, at such premium as may be determined by the Board through public issue and /or rights issue and / or Qualified Institutional Placement or a combination thereof at such time or times and at such price whether premium or discount to market price and on such terms and conditions including rate of interest etc as may be decided by the Board of Directors at the time of the issue or allotment consider the prevailing market conditions and any other relevant factors wherever necessary in consultation with the Merchant Bankers, subject to necessary provisions & approvals. 3. Change the name of the Company from "Adarsh Derivative Ltd" to "Vikas Granaries Ltd".

The CMD of Continental Controls ltd, restrained from buying, selling

Sub : Order Under Section 11(4) read with Section 11 and Section 11B of the SEBI Act, 1992 against Continental Controls Ltd. and its Chairman and Managing Director Shri Navin Thakkar in the matter of Irregularities in the Notice for Buyback of Shares of Continental Controls Ltd and trading in the shares thereof SEBI vide its Order dated 14th February, 2008 has restrained Continental Controls Ltd. (PAN AAACC2007J) from accessing the securities market for a period of two years. The CMD of Continental Controls Ltd., Shri Navin Thakkar (PAN AABPT8558R) is hereby restrained from buying, selling or otherwise dealing in securities for a period of two years. The said order is available on the SEBI website www.sebi.gov.in

Centurion Bank of Punjab (CBoP) v/s R Power IPO

THE lure to make a quick buck was not restricted to HNIs and retail investors alone while subscribing to the Reliance Power IPO. Banks were not far behind. According to market sources, Centurion Bank of Punjab (CBoP) was one of them. The bank is reported to have been allotted 26 lakh Reliance Power shares. The bank sold its entire quantity on Tuesday and is believed to have incurred a loss of approximately Rs 20-26 crore on that. The significance of the loss can be gauged from the fact that the bank had posted a net profit of Rs 48 crore for the quarter ended December 2007. The stock rose 4% to close at Rs 48 on Wednesday. When contacted, Centurion Bank of Punjab country treasurer Tarini Vaidya said, “We have invested in IPOs through this financial year. We have had a profitable year.”

खबर है कि............

* A leading investment broker is bullish on International Travel House and has recommended it to his HNI clients and also included it in his portfolio scheme. * Ratnamani Metals & Tubes may touch Rs.1400 plus says an analyst’s report from a leading broking house. * Whether realty shares move up or not Mahindra Life Space shall double from hereon going by the response its every project fetches. * Bank of India may issue shares from government through the QIP route at Rs.440 plus. Technical analysts believe it can cross Rs.580 mark in coming months. * Abhishek Industries, Paramount Communications, Bhagyanagar Industries, Nahar Industries., FSL, Finolex Industries and Arvind Mills are the best mid-cap bets favoured by the mid-cap mutual fund schemes too. * BHEL may be sulking for now but very soon it will renew its upmove with vengeance and cross the earlier top of Rs.2900 plus. How can anyone go wrong on its robust fundamentals and more than robust order book? * At a current Enterprise Value of Rs.60-65 cr., Rama Papers is available for a song. Promoters themselves have bought about 20 lakh equity shares at Rs.35 per share through preferential allotment. * Bombay Oxygen has sold only the development rights of its Mulund property to HDIL for a consideration of Rs.200 cr. Ironically, the company is available at an enterprise value of Rs.150 cr. although the land itself is worth Rs.300-350 cr. Just grab this scrip and forget it for a year. * As per reliable sources, Panoramic Universal is getting lot of strategic offers at Rs.150 per share but the management is looking to raise capital above Rs.200 per share. Hence retail investors shouldn’t miss this opportunity to buy at Rs.110 from the open market. * Prithvi Information Solutions has bagged an order of Rs.309 cr. from BSNL for supply of transmission equipment that will help us increase its network bandwidth. Accumulate it at declines. * Promoters of Ind Swift Labs are again making preferential allotment of 25 lakh warrants to themselves and others at Rs.70 per share. A risk free bet at current levels. * Small caps and mid caps have been battered and investor morale shattered. However, in these difficult times good dividend yield stocks are a defensive play. Zenith Fibres, South India Paper Mills are such stocks with such value. * California Software has maintained its strength despite the market volatility. With good earnings potential and acquisitions, the stock can be added in small quantities for medium-term appreciation.

Sudden breakdown of सर्विसेस

Due to serious heart attack, I was under ICU Since last week. Services were interrupted & may remain one month in future. We regret for this.

SUBPRIME EXISTS in INDIAN MARKET

RBI believes and has hard evidence that a problem similar to subprime exists in the Indian market and this time due to Indian companies exposing themselves to complex derivative products denominated in foreign exchange, sources said. NDTV has learnt that this might be the reason why RBI warned corporates on exposure to foreign exchange derivatives.

Sources have confirmed to NDTV that two Indian private banks and three foreign banks are sitting on massive open positions in foreign exchange derivative products and all these banks have been given a warning by RBI to unwind the positions.

NDTV is not revealing the names of these banks since it is yet to get their comments on the issue despite requesting them to clarify their position.

If the total amount which is stuck is calculated based on positions of other banks in the system, it could potentially pose a risk of over Rs 10,000 crores whereas some say it could be over $3 billion.

Call it India's own subprime problem but the systemic crisis which is now a huge talking point amongst the corporate and treasury circles is yet to unfold in the open.

NDTV has met and spoken to more than five treasury heads of leading banks who confirmed that the total amount could exceed over $3 billion and if this amount is not absorbed by the banks, it could mean a write off on their balance sheets.

Looking at the banks strength it may not wipe them out yet but the fear of write offs is now knocking on the door of these Indian banks. The question is why and how did this begin and is financial innovation and greed for profits once again the reason?

New private sector banks who have been aggressively pushing forex derivative products to corporate clients approach CFOs of companies to increase their exposure to book profits through trading.

But since the RBI only permits these banks to run books for certain forex derivative products they try and offer more complex products through other sources. To meet corporate demands, these banks have been buying complex structured products from foreign banks.

Now that the dollar has turned so sharply not just against the rupee but also against other currencies, these structured products are resulting in losses so foreign banks are looking to square off positions.

But with corporate not willing to square off at their end, these domestic banks face the possibility of having to take a hit to their balance sheets and if one were to quote the policy, it clearly said: " Banks are also urged to carefully monitor corporate activity in terms of treasury/trading activity and sources of other income to the extent that embedded credit/market risks pose potential impairment to the quality of banks' assets."

Experts say that the problem is arising from the corporate sector where many large corporates are keeping derivative positions open and are avoiding booking forex losses in their quarterly reports.

But in the past they were happy dealing in complex forex derivatives since it gave them handsome treasury profits. Now company boards are not willing to take a hit on the bottomline and are hence refusing to square off the positions which in turn is putting banks at risk. (source: Nextresearch)