New Delhi, Reliance Energy Ltd (REL) is a 78-year-old private sector power major engaged in production and distribution. REL is an integral part of the Anil Ambani Group, • control. Indian insurance companies keep the 21st 50% of equity capital Reliance Energy Limited.

REL is the largest private sector production and distribution of players is given as 24 200 MW of large size power projects, or directly to REL or its managers on their financial strength and technological power. REL’s ability to perform all of these on their own projects, its financial position and strong enough to raise all the funds needed. These effects projects, such as Sasan, Dadri, Rosa and other famous works

But the draft Red Herring prospectus of the other Anil Ambani group companies • Reliance Power Limited (RPL) for Rs 13.0 billion in public offering of shares of stock discs Archive (DRHP) carefully. 2, are each year (each two shares of face value of Rs, therefore, expected that the issue price per share is believed to be about 60 rupees to use)
The results showed that the areas of power generation equipment, access to the name of REL and secured the strength of REL have been transferred by some means of understanding the internal communications and RPL. According to the DRHP RPL will be conducted in 12 power projects in India have 24 200-megawatt capacity. The draft constitution that repl will be further defined in the ADA Group, the largest power sector investment tool. This is a very REL companies and their shareholders, the future prospects for the hard-hit.

For example, the issue price of 60 rupees, a reliable electricity 70 billion rupees and Anil Ambani • 350 billion rupees of shares has been purchased more than one billion rupees! Therefore, if reliable power supply problems in the stock price of RS 500 per share, Anil Ambani will receive in the future • shareholders rely on electricity costs by 55 billion rupees.

Through a variety of notification and instructions it proposed RPL mops up Rs. 800 billion rupees of public money through the IPO. According to the latest news from the Lead Manager, UBS, has a value of RPL Rs. 7000 billion rupees. (At least) RPL does not have the experience or the implementation of these projects, so that the valuation of the company’s ability to reflect the pure benefit of these projects REL. This 7000 billion rupees valuation are those who are deprived of REL, as Mr. Anil Ambani’s personal wealth • project value. If the problem occurs in public, to Mr Anil Ambani enrich himself • RS Rs 35 000 billion rupees in India, the cost to the public. .

Company law provides for directors fiduciary duty to ensure that the assets of the company’s goals and improve shareholder wealth. Restrictions on several areas of the law and the company’s directors and any transactions to ensure that the directors should not be abused, all personal interests, his position. The law also means that significant assets of the company can not transfer without shareholder approval.

But all these have a complete mediator of the REL, and deprived of the economic interests of shareholders.

It is surprising to note that LIC, one of the REL board candidates, the largest shareholder, has been a mute spectator. Analysts doubt that the group’s founder and director of ADA nominee interaction.

Certainly, insurance companies and other insurance companies in Libya in their responsibilities and obligations to protect the public who invested hard earned saving in favor of insurers.

Analysts said India has the responsibility to keep the Securities and Exchange issue. India’s Securities and Exchange Commission has a responsibility to protect the interests of securities investors. The public offering will allow the establishment of a dangerous precedent. In addition, under Article 3. 7th 1 (The SEBI guidelines), it can not make a public offering of Rs 2 face value share price of less than 500 rupees each.

In this context, 28.Damodaran Chairman, SEBI Chairman, as the views of the report Economic Times 15 October 2007, very relevant.

“Institutional investors will play a positive role to ensure that minority shareholders may not”, “When we talk about investors, administered by Tai Yue is Fei Yong, a self-confident enough that they? Youxiegongsi of about 30 institutional investors Zong Gong% of shares , but they participate in the Meeting. they have not heard their issues are unhappy at the AGM?

Perhaps Mr. 28.Damodaran dependence in the minds of the public power issue, suggested that he uttered those words.

Small surprise. Quiet Condapan Silvius, members of Congress and the Federal Court Sh Baleshwar Yadav, Lok Sabha had written to the melting point of the Central Vigilance Commissioner, Finance and Sh. Bing Ting Chang Gupta, the company’s response to this abuse complaint issues.

Tags: Divided, Energy, Reliance, shareholders, wealth

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