Just a Reliance Power Thought for Anil Ambani as he forgoes Personal LPG Subsidy
This triggered a thought without offence or malice for Anil Ambani to consider and addressed to him in first person :
Your Reliance Power Market Cap is Rs 16410 crs at Rs 58.50 with 75% held by you as Promoter and most at par.The Public hold just over 14% while the big guys FIIs and DIIs hold 11%
The Shares were allotted in a heavily record oversubscribed IPO to Retail Investors in January/February 2008 at Rs 427.50,after a 5% discount on IPO Price of Rs 450 and within months of the IPO Listing company issued a 3:5 Bonus in May 2008 under pressure to reduce holding cost of retail allottees to Rs 267.19 per share
I don’t know how many of the original allottees yet continue to retain faith and hope and hold the share but your records can identify such
The Thought for what it’s worth :
Why don’t you,Mr Anil Ambani emulate Richard Branson who bought back Virgin shares at cost from shareholders and went private again when the share price had tumbled after listing ?
Branson committed 182.5 Million Pounds in 1988 for this and wrote about it in his inspiring book ” Screw it,Let’s Do It”
You,Mr Ambani ,have just committed thousands of crores by acquiring Pipavav Defence recently.
Can you commit some more for this =>Reliance Power Equity is @ Rs 2800 crs and Public(excluding FIIs & DIIs) hold only Rs 390 crs of it of which only a portion would be original allottees in your IPO seven year ago in January 2008.Even assuming all are original allottees or you also wish to compensate those who sold out you would need Rs 10500 crs to to so at their cost of Rs 267.19
Or you wish to quote your good friend Amitabh Bacchan’s father’s great quote ” Joh Beeth Gayi woh Baat Gayi”
No Offence and No Malice,Mr Ambani but in one stroke you would have redeemed for the Reliance Power fisaco
May not be a practical exercise but even voicing Intention can be a great step
Forbes put your latest 2015 real time networth at US $ 3.7 B down considerably from the US $ 42 b in 2008 when Reliance Power IPO ‘hit’ the market
I’ve got a great feeling that committing US $ 1.5 B to play out this above thought in Reliance Power will catapult your worth in more ways than one in quick time….Reliance Power was willing to pay US $ 2 B for Power Plants of Jaiprakash Group in July 2014 in a deal that came apart….believe me that you will create a much higher value intangible asset immediately that will lead to higher tangible worth going forward if my thought is played out
