Another big story from India. Reliance Power is going to the capital market for its expansion plans. As we know there is a huge shortage of Power and it only furthers the gap as the economy grows. Huge investment is required to meet the demand of consumers and industries. This IPO is definitely in the right direction as far as raising capital for infrastructure development in India.

Reliance Power IPO

Reliance Power Limited has recently filed its Draft Red Herring Prospectus (DRHP) with SEBI.

Reliance Power Limited IPO which would be one of the biggest IPO in Indian stock markets which will issue 130 crore equity shares of Rs 2 each at a price to be decided later.

The net issue to the public would be 114 crore equity shares after the promotors contribution of 16 crore equity shares.Reliance Power IPO will constitute 11.5% of the post issue paid-up capital of the company and the net issue will constitute 10.1% of the post issue paid-up capital of the company.


The company plans to raise close to USD 3.5 B from this offering.

One of the large Oil & Gas company in China is making its initial public offering of shares. Its clearly unlocking value and getting ready for more expansion in terms of organic and aquisition strategy.China Daily reports today

PetroChina, one of China’s biggest oil and gas producers, will raise 66.8 billion yuan (8.9 billion U.S. dollars) in the biggest share sale of the year, the China Securities News reported Tuesday.

The oil producer will sell four billion shares at 16.7 yuan apiece, according to a statement today.

The share sales are bigger than Shenhua, the country’s biggest coal producer, which sold 66.6 billion yuan worth of sharesin September. PetroChina’s will also rank among the world’s biggest initial public offerings (IPOs) this year.


PetroChina has attracted a record 3.37 trillion yuan in applications for its Shanghai listing, topping Shenhua’s 2.66 trillion yuan.

The statement shows that a total of 484 investors will attend the off-line allotment, more than Shenhua’s 465 investors and China Construction Bank’s 432. Read the rest of this entry »

As the Sensex crossed 20,000 today,..Mukesh Ambani’s market value of his wealth rose to $63.2 B. he has surpassed Bill Gates, Carlos Slim helu and Warren Buffet. This has been achieved despite the split with his brother Anil Ambani. With India growing substantially in the next decade his wealth is going to only increase.

PTI news in Times of India reports

Following a strong share price rally on in his three group company, India’s most valued firm Reliance Industries, Reliance Petroleum and Reliance Industrial Infrastructure Ltd, the net worth of Mukesh Ambani rose to $63.2 billion (Rs 2,49,108 crore).

In comparison, the net worth of both Gates and Slim is estimated to be slightly lower at around $62.29 billion each, with Slim leading among the two by a narrow margin.

Warren Buffett, earlier the third richest in the world, also dropped one position with a net worth of about $56 billion.

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Ambani’s wealth of about Rs 2,49,000 crore includes about Rs 2,10,000 crore from RIL (50.98 per cent stake), Rs 37,500 crore from RPL (37.5 per cent) and Rs 2,100 crore from RIIL (46.23 per cent).

Mukesh Ambani - Richest Man in the world

The Mumbai Stock Exchange Index, Sensex, touched all time high of 19235 today.This happened due to some solid performance of Capital Goods sector led by Larsen and Toubro recording a massive 73% profit growth from the previous quarter.

Biggest Sensex gainers were Larsen & Toubro (up 11.24%), State Bank of India (5.58%), BHEL (4.84%), Tata Steel (3.88%) and Mahindra & Mahindra (3.69%). Hindustan Unilever (down 1.22%), Dr.Reddy’s Laboratories (0.91%), ITC (0.68%), Wipro (0.57%), Ranbaxy Laboratories (0.47%) and Cipla (0.27%) were the laggards.

It looks like a Diwali run of 20K at the Sensex is imminent. Some time back Mr Rakesh Jhunjhunwala, The Indian Warren Buffet, had quoted that if the Indian companies show growth in their earnings like this for next 6 years or so then  it is likely that Sensex may touch 50,000. Thats a lot of growth and return for the investors.

If you are still thinking where to put your money,…U bet!

Despite the sub-prime crisis spreading its wings to the Indian stock market, the country along with its emerging market peers China, Brazil and Russia defied a sharp plunge in the worldwide IPO market in the third quarter of 2007, a study said on Wednesday.

The number of global initial public offerings dropped by 22 per cent in the July-September quarter compared with the previous quarter, according to the quarterly Global IPO Report from international consultancy firm Ernst and Young.

While mature markets experienced a slowdown, emerging markets continued to thrive with record activity and accounted for nearly half of the total IPO proceeds in the quarter, the report said.

Globally, $57 billion were raised in 428 IPOs in the third quarter, and the amount of capital raised fell by 36 per cent compared with the previous quarter. However, the number of IPOs rose by 25 per cent and the value was up by 27 per cent on year-over-year basis, E&Y said. Read the rest of this entry »