Analysts Meet - Reliance Power

 RELIANCE POWER LIMITED

cordially invites you to a

ANALYSTS' MEET

In connection with the Company's Initial Public Offer of Equity Shares


Day/Date: Friday, 4th January 2008 Venue: The Crystal Room, Hotel Taj Mahal


Time: 6.45 pm Service: Cocktail & Dinner

RSVP:
Venaktesh.somayaji@relianceada.com ; Cell: 9312782480
Sharad.goe@relianceada.com ; Cell : 9323835459
Girish.gangawat@adfactorspr.com ; Cell : 9892016641

BGR Energy Systems - rewards investors well

 Settles at Rs 901.30 on BSE

BGR Energy Systems settled at Rs 901.30 on BSE, a premium of 87.77% over the IPO price of Rs 480.

The stock debuted at Rs 801, a premium of 66.87% over the IPO price. It touched a high of Rs 940 and a low of Rs 801. On BSE, 43.74 lakh shares were traded on the counter.

The company had priced the IPO at the top end of the Rs 425-480 IPO price band.

At the current price of Rs 901.30, the PE multiple works out to 243.59 based on the 18 months ended March 2007 annualised EPS of Rs 3.70.

BGR Energy Systems IPO had ended on 12 December 2007 with 119.54 times subscription. The qualified institutional buyers (QIBs) category was subscribed 161.67 times, the non institutional investors category was subscribed 153.08 times and the retail investors category was subscribed 46.89 times.

BGR Energy Systems is a supplier of systems and equipment for the power, oil and gas, petrochemical and process industries.

BGR Energy Systems plans to utilise the IPO proceeds to augment long term working capital requirements, expand production capacity by establishing additional manufacturing facilities in India, China and the Middle East.

The company reported a profit after tax of Rs 39.96 crore on sales of Rs 786.80 crore in the 18 months period ended March 2007.

Reliance Power - Part Payment Option

Reliance Energy is going all out to woo retail investors for the upcoming initial public offer (IPO) of its subsidiary, Reliance Power. After deciding to offer shares to retail investors at a 5% discount to the price band of Rs 405-450, the Anil Ambani Group entity intends to provide this investor segment with a "staggered payment" option in this IPO.

Accordingly, retail investors need to pay only 25% of the total investment amount at the time of submitting the application and the rest at the time of allotment on first call.

By availing this option, the investor does not have to lock in the entire amount for which he has applied in the IPO. This means, if a retail investor intends to apply for 100 shares at Rs 450 per share (Rs 427.50 after discount), he would need to pay only Rs 10,687.5 (25% of Rs 42,750 while applying and the rest during allotment, as against the lumpsum of Rs 42,750.

This option brings a level playing field for retail investors vis-à-vis qualified institutional buyers(QIBs), who are allowed to bid in an IPO with just 10% margin while submitting the bids in a public issue. Prominent public issues, which enabled the staggered payment options in recent times include ICICI Bank and Reliance Petroleum.

Grey Market - Future Capital, Reliance Power

 Future Capital Holdings 700 to 765 300 to 320

Reliance Power 405 to 450 360 to 370

BGR Energy 480 360 to 380

Burnpur Cement Ltd. 12 6 to 8

SVPCL 42 DISCOUNT

Aries Agro 130 25 to 30

Manaksia Ltd. 160 10 to 15

Porwal Autocomponents 75 DISCOUNT


Precision Pipes & Profiles 150 20 to 22

Grey Market Premium Reliance Power IPO

 Reliance Power 400 to 450 340 to 350 (Shooting up!)


BGR Energy 480 350 to 370

Burnpur Cement Ltd. 12 5 to 7

SVPCL 42 DISCOUNT

Aries Agro 130 20 to 22

Manaksia Ltd. 160 12 to 15


Porwal Autocomponents 75 DISCOUNT


Precision Pipes & Profiles 150 20 to 22