Tag Archive for 'Reliance Power'

India’s investors lack sophistication

From the blog, Riding the Elephant by John Elliott, Fortune’s India correspondent  

India has unsophisticated investors. I’m talking about stock market investors of course following the stock market crash, with Mumbai’s key Sensex index plummeting 19% from an all time and over-priced high of above 21,000 on January 8 to under 17,000 by Tuesday. Such a remark, judging from past Riding the Elephant experience, will generate a furious tirade of comments, especially from readers based in the United States who are always anxious to protect India’s reputation.

But how else can you explain a market which swings from such extremes. Last week it mobilized bids totaling an astronomic $180 billion for the $2.9 billion initial public offering launched by Anil Ambani’s Reliance Power (which has yet to produce a revenue stream). On Monday and Tuesday, it crashed, seemingly ignoring the country’s strong economic fundamentals. As Palaniappan Chidambaram, India’s finance minister, pointed out when he tried to calm nerves during the slide, the fundamentals are strong. The economy, he pointed out, is growing at around 9%, and the prime minister’s economic advisory council is forecasting 8.5% for 2008-09.

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Gone in 60 seconds: Reliance Power IPO

Anil Ambani speaks to Economic Times on powering India’s biggest IPO, his father, Dhirubhai Ambani and how he plans to celebrate

At 4.30 pm in Reliance Centre, headquarters of the ADAG group in Mumbai, Anil Ambani has run the course a few days ahead of the Mumbai Marathon — and in record time. So what does he have to say about India’s largest-ever IPO? “Gone in 60 seconds,” says Ambani Jr, walking around the room strutting his stuff (Rs 110,000 crore, no less). Dressed in ET-pink shirt, grey trousers and black moccasins, Anil Dhirubhai Ambani can barely hide his euphoria: “If you ask me, this is the beginning of the ADAG group,” he says, amidst congratulatory phone calls and smses.

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