Reliance Power - Power limited for few only
What does a public limited company means? It means, "the profits will be limited to only some public (atleast initially). If you don't believe this then sample this news piece from IBN..
Reliance Power allots shares, people who bid below 225 shares got none and that proves what a public limited company stands for. When the IPO was announced, Reliance power launched a blitzkrieg advertising campaign over all forms of media. Half page ads, radio, TV, hoardings everything was just shouting out loud that this is the IPO from a company which is famous for empowering small shareholders. Anil Ambani mentioned in his interview that Reliance power was his late father's vision and he belongs to the same company which popularized the stock market in India. People rightly say that stock market has seen two periods: before Reliance when people invested in land or gold and after Reliance where people started believing in the power of equity.
People still has the same faith in anything remotely related to Reliance and that's why when the IPO was announced the stock market witnessed a crash after long long time. The reason offered was absence of liquidity as people were keeping money aside to invest into Reliance and these were not those investors who has lakhs to invest but rather those with little cash to invest. And well, they ended up getting no stocks in the end.
They say that the world is biased towards the resourceful and it's true but Dhiru Bhai Ambani was someone who defied the perception and created wealth not only for himself but for million of small investors. A legacy which is unmatched till now across the world and something, which his son(s) are forgetting (atleast the younger one did show some signs of that).
I don't understand that a simple mathematical equation can become so complex when it comes to selecting investors. Reliance power will definitely prosper but the 450000 small investors will sulk for not getting any share. I am not one among those, instead I would invest in NTPC which is producing more electricity than what Reliance power will produce in 2012.
Anyways the good news is that now liquidity is unleashed and hopefully we will see some momentum in the market now.
Reliance Power allots shares, people who bid below 225 shares got none and that proves what a public limited company stands for. When the IPO was announced, Reliance power launched a blitzkrieg advertising campaign over all forms of media. Half page ads, radio, TV, hoardings everything was just shouting out loud that this is the IPO from a company which is famous for empowering small shareholders. Anil Ambani mentioned in his interview that Reliance power was his late father's vision and he belongs to the same company which popularized the stock market in India. People rightly say that stock market has seen two periods: before Reliance when people invested in land or gold and after Reliance where people started believing in the power of equity.
People still has the same faith in anything remotely related to Reliance and that's why when the IPO was announced the stock market witnessed a crash after long long time. The reason offered was absence of liquidity as people were keeping money aside to invest into Reliance and these were not those investors who has lakhs to invest but rather those with little cash to invest. And well, they ended up getting no stocks in the end.
They say that the world is biased towards the resourceful and it's true but Dhiru Bhai Ambani was someone who defied the perception and created wealth not only for himself but for million of small investors. A legacy which is unmatched till now across the world and something, which his son(s) are forgetting (atleast the younger one did show some signs of that).
I don't understand that a simple mathematical equation can become so complex when it comes to selecting investors. Reliance power will definitely prosper but the 450000 small investors will sulk for not getting any share. I am not one among those, instead I would invest in NTPC which is producing more electricity than what Reliance power will produce in 2012.
Anyways the good news is that now liquidity is unleashed and hopefully we will see some momentum in the market now.
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