Reliance Power IPO

On January 15 the public issue of Reliance Power (Anil Dhirubhai Ambani Group) opened and oversubscribed 10.2 times on same day which is a historic in Indian share market history. I hope that it will be oversubscribed 50 times by its last date i.e. 18^th January 2008 because peoples are selling their existing holding in big quantities to invest money in this IPO and the BSE sensex and Nifty sensex is going down continuously.

All over the country peoples are opening demat account in large number as it is necessary to have a De-Mat account for bidding in IPO. Reliance is issuing 26 crores shares in this price bank of Rs.405-Rs.450 with a discount of Rs.20/- per share. Company has spent a lot of money and using various methods for advertisement of this IPO. From Mumbai dabbawalas (Sex Sigma rated) to TV channels everywhere company is giving ads.

The grey market sources said that the price of share after listing will be approx. Rs.900 although it is not a reliable information but looking at the history of reliance group one can definitely rely on the goodwill of company. Company has around 13-14 power projects based on coal, gas and hydroelectric.

If we look at the power sector, it has great potential and all the shares of power sector companies like NTPC, Power Grid etc. are performing well.

Even many mutual fund companies are planning to launch their new offering immediately after the Reliance Power IPO in a hope that the refund sent to bidders may be attracted for their funds.

Please provide me your views for this IPO.

Indian Car ‘Nano’

The launch of much awaited TATA Rs. 1 lac car had been recently launched in Auto Expo, Delhi, India. It is named ‘Nano’ a name which brings science into everyone minds. Its launch immediately became news for whole world media. Invention of this car ‘Nano’ has once again proved the engineering and entrepreneurship power of modern India. Nano had given a big challenge to all major automobile companies like GM, Ford, Toyota, Mitsubishi, Renault Nissan. With 3.1 metre length, 1.5 metre width and 1.6 metre height it will not only change the Indian car market but have a very big impact on the whole world car market. Nano will be available in three versions with wide range of colors. Some of the important features of this car are as follows:-

1. 30 litre fuel tank
2. 4 speed manual gearshift
3. Mileage of 23 km per litre
4. Roomy passenger compartment
5. Front disk and rear drum brake
6. Whole aluminium petrol engine of 623 cc, 33 bhp, multi-point fuel injection
7. Tubeless tyres

One of its version will have air conditioning facility. Tata Motors is planning to launch its diesel version also.

As per Mr. Ratan Tata everyone has suggested that it is not possible make a car at a price of Rs.1 lac but he dared to dream it and makes it possible. Now the dream of Mr. Ratan Tata became a reality. The rates of small car already available in market like Maruti-800 are slashed and other players are redesigning their strategy for Asia (Indian) market as European and American market are declining.

I will write more about Nano very soon till then send me your comments for Nano ‘The Car of India’.

Sir Edmund Hillary dies at 88

Sir Edmund Hillary has died aged 88.He passed away at Auckland City Hospital at 9am this morning. Sir Edmund shot to international stardom as the first man to scale Mt Everest in 1953.Prime Minister Helen Clark today described Sir Edmund as the best-known New Zealander to have ever lived…

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