My Picasa Web Albums on a ride…

I have uploaded all the photos to Picasa
And its looking awesome
Lot more to come
Visit http://picasaweb.google.com/prp3210
Enjoy!!!

Here are some photos for you…

Independence Day Celebrations!!!

When opportunities don’t knock, its the time to make them knock…

A small cartoon which shows us that there is nothing that can’t be done. There is a definite solution to every problem. an old quote goes, ‘The same opportunity never knocks again’. But today, what we believe is, when you do not have an opportunity, its the time to create one. Further, the opportunities are everywhere, all you need to do is, FIND THEM!!!

Here is a doctor who doesn’t have patients and lets see what new profession he takes up…

Go on, the world is a bundle of opportunities, find them and make the best us of them. But yes, definitely not like this doctor who has followed wrong steps to create them. Be righteous and keep yourself active. You will soon achieve…

Experience at the IQ 2008…

From many days, I was in a craze of participating in the IQ 2008. IQ is a quiz compeition conducted by IMS (Institute of Management Studies). It stands for IMS Quotient. It is considered as the nation’s biggest undergraduate college quiz competition. There are 5 levels

1. The Eliminaton Round
2. City Finals
3. Quarter Finals
4. Semi Finals
5. National Finals

Definitely a tough challenge. However, I, alongwith my teammates, Ajay Agarwal and Chetan Pujari had got ready to take this challenge. All was set and fine. But then, all my friends of SSBJ had planned a meet at Kudalasangama on 16th. This was a lifetime opportunity. My friends were getting together after a very long time of around 4 years. And I really doubt if we can get together again as everyone is going to get busy in life in the days to come. I decided to go for the meet on 16th and then move to the quiz on 17th. But then, due to certain personal reasons, I was unable to move out of Hubli on 16th. I missed the show badly and felt bad for it. I apologize to all my friends who were expecting me to join them and I could not do that. After all, an opportunity that had come after 4 long years and which might not come in the future again was missed by me

Today morning, I got up in time (Thank God!) and after the routine activites, reached the bus station also in time (0815 hours). IMS had made some arrangements to the venue directly (In JNMC College Campus at B S Jirge Auditorium). However, the number of participants was enormous. It appeared to me as if it will be a big problem of crowd management at Belgaum. We got into a bus and started the journey. Coincidently, S B Nadagouda sir also joined us. He was accompanying his college teams for the competition

Soon, we were in Belgaum. There was a lot of time and we moved on for breakfast. The competition was supposed to begin at 1230 hours and we were back by 1215 hours. However, the crowd was so massive that everything was getting out of control. The auditorium could accomodate a 1000 people. However, there were at least 2500 people. There was a lot of mismangement. The IMS people had gone to all colleges in Hubli, Dharwad, Belgaum and made almost everyone who they get in the college to fill up the form. They did this with an intention of publicity

Further, there was a brochure distributed among all the students. In that, it was mentioned that all the city finalists will get an iPod. However, all the students misunderstood thinking that every participant would get an iPod and a lot of them came over for the same reason. But then, soon, their hearts were broken

Due to excessive participants, the IMS people did not understand what to do. These are people who give coaching for CAT

Now, lets see what solutions they got

Solution No. 1- We are full. So, others who are not getting a seat in auditorium can leave

Well, you go to each and every person and invite them for your marriage. All come on yor invitation. Very few have come volunteerly. And then, you tell, get out. What does it mean? And these are management teachers???

Solution No. 2- We will conduct the first round twice

Hmmm… so, the second round participants already know the questions. What a solution!

Finally, it was decided to give papers to everyone and the questions would be announced everywhere and from wherever we were, we had to written the answers on any sheet of paper and hand it over to them. Well, although this was the only solution possible, yet, things were not fair. It was obvious for the people to refer books and call their friends to get the answers. Although everything happened before everyone’s eyes, everyone was helpless

The main reason for all this mess is definitely the IMS people. Firstly, they go and gather big crowd by telling them attractive things. Just for the sake of getting publicity, they print a lot of booklets and advertise all over. They roamed across all the colleges. They even stood at the entrance of all the colleges and made everyone register for the quiz. And when, they do all this, they should also make the arrangements to cater the needs of all the people. However, this was not taken care of. And the entire event was mismanaged

We were asked 21 questions. Of course, the quality of question was very high. We did our best and submitted the papers. And then, almost 60% of the teams left. We all sat back at the auditorium. And the best 6 teams were declared. We were not in the list. However, a JGCC team was there with a surprise package, as usual

We waited back expecting to win some audience prizes. Things went smooth from here on. Everything was fit and complete. Unfortunately, although we know some answers, we were not lucky enough to get any audience prizes either

At the end, the quiz results were declared. And then, another dhamaal. The winners were PG (Post Graduation) students. And the quiz was only for under graduates. You can imagine level of publicity has happened. And after everything was over, they tell that they are PG students, they get disqualified and the runners up were declared the winners

It was more a boring trip rather than a competition. I defnitely understand that arranging such big events is a difficult task. But then, one must always remember, TOO MUCH IS TOO BAD. These days, the educational institutions have become so commercial that they are on a neck to neck competition with companies like AirTel when it comes to advertising. A lot of misguiding in the name of career guidance is visible clearly everywhere

I must definitely say that we had a OK time. However, if things were planned more correctly in limits, things would be much better

Lessons in Logic…

If your father is a poor man, it is your fate

but

If your father-in-law is a poor man,it’s your stupidity

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I was born intelligent

Education ruined me

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Practice makes perfect

But nobody’s perfect

So why practice

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If it’s true that we are here to help others

Then what exactly are the others here for

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Since light travels faster than sound

People appear bright until you hear them speak

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How come ‘abbreviated’ is such a long word

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Money is not everything

There’s Mastercard & Visa

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One should love animals.

They are so tasty

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Behind every successful man, there is a woman

And behind every unsuccessful man, there are two

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Every man should marry

After all, happiness is not the only thing in life

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The wise never marry

And when they marry they become otherwise

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Success is a relative term

It brings so many relatives

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Never put off the work till tomorrow

What you can put off today

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‘Your future depends on your dreams’

So go to

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There should be a better way to start a day

Than waking up every morning

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‘Hard work never killed anybody’

But why take the risk

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‘Work fascinates me’

I can look at it for

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God made relatives

Thank God we can choose our friends

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The more you learn, the more you know

The more you know, the more you forget

The more you forget, the less you know

So, why learn

—————————————————————–

A bus station is where a bus stops

A train station is where a train stops

On my desk, I have a work station

What more can I say

Login and Logout process at different companies…

Infy

Login= Powered by Intellect… Driven by Values…

Logout= Exhausted by Work… Driven by Night Shuttle…

So, dont work like this…

Always take time for your life and enjoy this short time on the earth…

Mind your thoughts…

Negative Thought Can Kill Dreams

Thoughts Are the First Principle in the Science of Getting Rich

How do you handle your thoughts? Did you know that on average you have anywhere between 40-50,000 thoughts a day? This is without adding all the negativity you might be getting from the TV, radio, newspapers, magazines, and the internet. What do you think sells – negative or positive news? A few years back ABC News actually had a 5 minute segment of positive news at the end of the national news on Friday night. It lasted a couple of years and they found that it wasn’t popular with its viewers, so they stopped having a good news segment

Here’s another startling statistic. Did you now that 87% of our thoughts are negative? It’s not a wonder everyone dwells on negativity and one of the major reasons we have so many negative people in this world

Wallace Wattles writes

“Every form and process you see in nature is the visible expression of a thought in the original substance. As it thinks of a form, it takes that form; as it thinks of a motion, it makes that motion. That is the way all things were created. We live in a thought world, and this world is a part of a thought universe.” (SoGR-Chapter 4)

We all have ‘ thought’ choices. Remember the saying ‘garbage in — garbage out’. Well that’s what’s happening to us with disastrous results. Some choices you can make to change this are to limit the amount of time you watch the news or read the newspaper. Paraphrasing what Wattles said is ‘when you think negative thoughts, you will create that thought’

Thoughts just come and go and if we spent all of our time giving each thought ownership, we’d be a complete mess. Our mind allows us to filter our thoughts, and we get to choose which ones we want to pay attention to and expand on. This is where we have to choose wisely, for thoughts become feelings and feelings create action with the end becoming a result

Now just think if you chose what you want to think about and impress those thoughts upon the universe. What you think about most often is what you become or what you form. Watch your thoughts – it’s who you become. Learning how to control your thoughts is the first principle in the Science of Getting Rich

MIND YOUR THOUGHTS

By Anil Bhatnagar

Have you ever thought about the fact that there is never a moment when you are not thinking—that whatever happens in this world begins with a thought? Here are five simple steps to help you manage your thoughts and achieve success and happiness in life

Be aware of your thoughts…

Start watching your thoughts, without identifying with them. Watch them as a detached observer. You may even get carried away by your thoughts. Never mind. It is natural—especially for a beginner. What you need to do, whenever you detect this, is to take yourself out of your thoughts immediately and get back to the process of thought-watching once again as a detached observer. Do not get perturbed by your thoughts. Don’t condemn or justify them. Don’t try to control them. Just watch them. After some time, you will come to know what your negative thoughts are about. Now concentrate on all the positive thoughts that you can replace these thoughts with, in order to switch over to a more positive attitude towards them. Our attempt should be to cut down the quantity of unnecessary thoughts and to improve the quality of the necessary ones. Keep yourself busy. Simple food, deep breathing and relaxation exercises also help manage your thoughts easily. Expect less from others

Identify negative thoughts…

Keep a logbook. Jot down your thoughts. Write down happenings of the day. Were they positive, appropriate and adequate or were they confused, superfluous and negative? Could you notice the interval between the happening and your response? If yes, could your foresee your negative thoughts? If not, what can, you do to notice this interval? Was there any discrepancy between words and thoughts? If yes, was it justified—could you find a better way of harmonizing your words and thoughts? Was the verbal response necessary, appropriate and adequate?

Sometimes we talk to others, or simply to ourselves, or think about something just like that. Ask yourself what provoked you to take the initiative to start a conversation. Was it essential? What was the purpose? Did it serve the purpose? If no, then why not? Did it use any unnecessary and emotionally charged negative words? Were the words used in thinking, inner dialogue or in talking to the other person, precise, appropriate, adequate and positive? Did you feel happy or satisfied after the interaction with the other person or with your inner self? Can you find ways of improving your performance as a thinker or a speaker? Keep in mind that logbooks are meant to get you started and make you aware of your negative thoughts. It is far more important, however, to be aware of these thoughts when they are just taking birth, rather than leave them for later analysis. Be conscious of the interval that separates the event from thoughts with which you respond to the event

Negative thoughts…

Imagine a strong sun radiating a powerful light. Use this mental sunshine to kill your negative, undesirable thoughts, emotions and images as and when these are detected. Take this sun as a mighty weapon which is always on the alert and which automatically chases any negative thought and kills it with a flash and then withdraws. Don’t forget to imagine that this sun is your faithful friend and is extremely kind to you

Keep a note of how many times you need to call the sun for its services. There will be a gradual increase, followed by a drastic fall. This is so because initially the number of times you call on your mental sunshine increases gradually as your awareness of your thoughts grows. The drastic fall is because what we do not use (the negative thoughts, in this case), we tend to lose

Replace with positive thoughts…

A vital step in this process is the immediate replacement of all negative thoughts by the positive ones. The shorter the interval between the disinfecting and the replacing stage, the better it is. Longer intervals between these two events weaken the impact of the positive thoughts. Our success and happiness depend on identifying our goals precisely and chasing them effectively, both of which, in turn, depend on how well we manage our thoughts. The quality of our thoughts decides the quality of the outcomes we land up with. Thoughts have the power to materialize themselves because they are instrumental in channeling energy towards the physical or mental condition they are about. External situations and the remarks of others can harm us through our thoughts—but only to the extent our thoughts allow them to. So think positive. Talk positive. Read positive quotable quotes of great people. Surround yourself with posters and cards bearing positive messages. Keep them on your table. Hang them on the walls. Paste them near the bathroom mirror and on the doors. Stick them on your watchstrap. Keep them on the refrigerator. Have them on the dashboard of the car. Slip them under the glass of the table in front of you. Slide them in the inner side of the briefcase you carry. Find other suitable places where you are bound to look at them every day

Remember that these messages will stale with prolonged use. So keep changing their position and contents. Do not let the momentum of these thoughts get weaker. Use them appropriately in response to specific negative thoughts. The replacing thought must be positive in every sense. Apart from being inspiring and assuring, it should also be suggestive. For example, if you confront a negative thought, “I can never succeed”, it will not suffice if you replace it with “Sun! Attack! I can succeed”. This kind of replacement may not be effective, for it sounds like wishful thinking and lacks assurance, depth and penetrating certainty. It is better to break your replacing thought down into more definite and specific steps or instructions.The replacing thought in this case may be: “I can succeed. By earlier failures I have become rich in experience and have come to know specific areas that require special attention. I will jot them down and systematically think of the ways in which I can improve. I shall plan. And then stick to it. There is absolutely no reason why I should not succeed. I will assess, plan, execute, monitor, modify and carryon with the plan, and finally succeed. In fact, I think that success has already been achieved and only time separates my thought of success and its transformation into reality. I am committing myself to all that is required to achieve success. I am a river that knows no obstacles. I shall find my way anyhow—and if there is none I shall make one.”

Reinforce…

Thoughts like these can be further reinforced with emotions and images. All this may take longer than one single replacing thought, but these are far more effective since they allow you to divide the desired target into workable units. Focus on a pleasant event that took place in the past. This way your thoughts will turn positive and your emotions and images will reinforce each other, resulting in an overall positive attitude

CVS- Computer Vision Syndrome…

Cancer update from John Hopkins…

YEARS OF TELLING PEOPLE CHEMOTHERAPY IS THE ONLY WAY TO TRY (TRY THE KEY WORD) AND ELIMINATE CANCER, JOHN HOPKINS IS FINALLY STARTING TO TELL YOU THERE IS AN ALTERNATIVE WAY

.

Cancer Update from John Hopkins

1. Every person has cancer cells in the body. These cancer cells do not show up in the standard tests until they have multiplied to a few billion. When doctors tell cancer patients that there are no more cancer cells in their bodies after treatment , it just means the tests are unable to detect the cancer cells because they have not reached the detectable size
2. Cancer cells occur between 6 to more than 10 times in a person’s lifetime
3. When the person’s immune system is strong the cancer cells will be destroyed and preventedfrom multiplying and forming tumors
4. When a person has cancer it indicates the person has multiple nutritional deficiencies. These could be due to genetic , environmental , food and lifestyle factors
5. To overcome the multiple nutritional deficiencies , changing diet and including supplements will strengthen the immune system
6. Chemotherapy involves poisoning the rapidly-growing cancer cells and also destroys rapidly-growing healthy cells in the bone marrow , gastro-intestinal tract etc , and can cause organ damage , like liver , kidneys , heart , lungs etc
7. Radiation while destroying cancer cells also burns , scars and damages healthy cells , tissues and organs
8. Initial treatment with chemotherapy and radiation will often reduce tumor size. However prolonged use of chemotherapy and radiation do not result in more tumor destruction
9. When the body has too much toxic burden from chemotherapy and radiation the immune system is either compromised or destroyed , hence the person can succumb to various kinds of infections and complications
10. Chemotherapy and radiation can cause cancer cells to mutate and become resistant and difficult to destroy. Surgery can also cause cancer cells to spread to other sites
11. An effective way to battle cancer is to starve the cancer cells by not feeding it with the foods it needs to multiply
    CANCER CELLS FEED ON
    a. Sugar is a cancer-feeder. By cutting off sugar it cuts off one important food supply to the cancer cells. Sugar substitutes like NutraSweet , Equal , Spoonful , etc are made with Aspartame and it is harmful. A better natural substitute would be Manuka honey or molasses but only in very small amounts. Table salt has a chemical added to make it white in color. Better alternative is Bragg’s aminos or sea salt
    Milk causes the body to produce mucus , especially in the gastro-intestinal tract. Cancer feeds on mucus. By cutting off milk and substituting with unsweetened soya milk cancer cells are being starved
    c. Cancer cells thrive in an acid environment. A meat-based diet is acidic and it is best to eat fish , and a little chicken rather than beef or pork. Meat also contains livestock antibiotics , growth hormones and parasites , which are all harmful , especially to people with cancer
    d. A diet made of 80% fresh vegetables and juice , whole grains , seeds , nuts and a little fruits help put the body into an alkaline environment. About 20% can be from cooked food including beans. Fresh vegetable juices provide live enzymes that are easily absorbed and reach down to cellular levels within 15 minutes to nourish and enhance growth of healthy cells. To obtain live enzymes for building healthy cells try and drink fresh vegetable juice (most vegetables including bean sprouts)and eat some raw vegetables 2 or 3 times a day. Enzymes are destroyed at temperatures of 104 degrees F (40 degrees C)
    e. Avoid coffee , tea , and chocolate , which have high caffeine. Green tea is a better alternative and has cancer-fighting properties. Water-best to drink purified water , or filtered , to avoid known toxins and heavy metals in tap water. Distilled water is acidic , avoid it
12. Meat protein is difficult to digest and requires a lot of digestive enzymes. Undigested meat remaining in the intestines become purified and leads to more toxic buildup
13. Cancer cell walls have a tough protein covering. By refraining from or eating less meat it frees more enzymes to attack the protein walls of cancer cells and allows the body’s killer cells to destroy the cancer cells
14. Some supplements build up the immune system (IP6 , Florescence , Essiac , anti-oxidants , vitamins , minerals , EFAs etc.) to enable the body’s own killer cells to destroy cancer cells. Other supplements like vitamin E are known to cause apoptosis , or programmed cell death , the body’s normal method of disposing of damaged , unwanted , or unneeded cells
15. Cancer is a disease of the mind , body , and spirit. A proactive and positive spirit will help the cancer warrior be a survivor. Anger , unforgiveness and bitterness put the body into a stressful and acidic environment. Learn to have a loving and forgiving spirit. Learn to relax and enjoy life
16. Cancer cells cannot thrive in an oxygenated environment. Exercising daily , and deep breathing help to get more oxygen down to the cellular level. Oxygen therapy is another means employed to destroy cancer cells

Some important notes

• No plastic containers in micro
• No water bottles in freezer
• No plastic wrap in microwave

Johns Hopkins has recently sent this out in its newsletters. This information is being circulated at Walter Reed Army Medical Center as well

Dioxin chemicals causes cancer , especially breast cancer.Dioxins are highly poisonous to the cells of our bodies. Don’t freeze your plastic bottles with water in them as this releases dioxins from the plastic. Recently , Dr. Edward Fujimoto , Wellness Program Manager at Castle Hospital , was on a TV program to explain this health hazard. He talked about dioxins and how bad they are for us.. He said that we should not be heating our food in the microwave using plastic containers. This especially applies to foods that contain fat. He said that the combination of fat , high heat , and plastics releases dioxin into the food and ultimately into the cells of the body. Instead , he recommends using glass , such as Corning Ware , Pyrex or ceramic containers for heating food. You get the same results , only without the dioxin. So such things as TV dinners , instant ramen and soups , etc. , should be removed from the container and heated in something else. Paper isn’t bad but you don’t know what is in the paper. It’s just safer to use tempered glass , Corning Ware , etc. He reminded us that a while ago some of the fast food restaurants moved away from the foam containers to paper. The dioxin problem is one of the reasons

Also , he pointed out that plastic wrap , such as Saran , is just as dangerous when placed over foods to be cooked in the microwave. As the food is nuked , the high heat causes poisonous toxins to actually melt out of the plastic wrap and drip into the food. Cover food with a paper towel instead

This is an article that should be sent to anyone important in your life

The splendor of our creation…

A few words collected about the Reliance Power IPO…

Now for all who have invested in the I PO… something to read !Reliance Power Limited IPO
Opens: 15th January 2008.Closes: 18th January 2008.
Price Band: Rs 405 to Rs 450. Price Band for Retail Investors: Rs 385 to Rs 430. (Rs 20 discount).
Number of shares offered to public: 22,80,00,000 (22.8 crore).+ Number of shares to be subscribed by promoters: 3,20,00,000 (3.2 crore).
Total new shares issued (sum of above two) = (26 crore)
Number of shares for retail investors: 6,84,00000. (6.84 crore).
Issue size (public) = (22.8 – 6.84) X 450 + (6.84 X 430) = 7182 +2941.2
= Rs 10123.2 crore.
Number of shares outstanding pre-IPO: 200 crore. Number of shares outstanding post-IPO: 226 crore.
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Retail Investors and NII can apply with Rs 115 margin per share. (The details of this have already been discussed in earlier posts).
Maximum application possible in retail category = 225 shares.
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Already, a lot has been discussed about Reliance Power and its business (which will be there a few years from now).
This is an extremely rare case where SEBI has allowed a company with almost 0 revenues, to raise money via an IPO.
If this was an IPO by some smaller group, it would have been 100% rejected by SEBI for having no business.
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Business:
The company claims that it will be developing power generation projects of 28200 MW over the next decade.
According to the IPO RHP, some of the projects that it will be developing are:
Rosa-I (to be commissioned in March 2010) – 600 MW – Coal based. Butibori (to be commissioned in June 2010) – 300 MW – Coal based.Rosa-II (to be commissioned in September 2010) – 600 MW – Coal based.Shahpur Gas (to be commissioned in March 2011) – 2800 MW – Gas based. Shahpur Coal (to be commissioned in December 2011) – 1200 MW – Coal based. Dadri (to be commissioned in March 2013) – 7480 MW – Gas based.Krishnapatnam (to be commissioned in September 2013) – 4000 MW – Coal based. Urthing Sobla (to be commissioned in March 2014) – 400 MW – Hydropower based. Tato II (to be commissioned in March 2014) – 700 MW – Hydropower based.MP Power (to be commissioned in July 2014) – 3960 MW – Coal based. Siyom (to be commissioned in March 2015) – 1000 MW – Hydropower based.Kalai II (to be commissioned in March 2016) – 1200 MW – Hydropower based.Sasan (to be commissioned in April 2016) – 3960 MW – Coal based.
If
everything goes as planned, capacity of Reliance Power at end of each year till 2016 will be:
2008: 0 MW. 2009: 0 MW. 2010: 1500 MW.2011: 5500 MW.2012: 5500 MW.2013: 16980 MW.2014: 22040 MW.2015: 23040 MW.2016: 28200 MW.
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Other Similar Companies:
I can think of two companies in the power generation sector that Reliance Power can be compared with:
NTPC and Tata Power.
NTPC has current capacity of 28000 MW and has target to achieve 66000 MW by 2017. ( See this thread on NTPC).
Tata Power has current capacity of 2300 MW.It will be adding 10000 MW of capacity more by 2012. Thus, it will have a capacity of around 12300 MW by 2012 end. The additions will all be coal based. -Mundra Ultra Mega Power Project -4000 MW. -Power plants in Maharastra – 3000 MW. -Captive power plants for Tata Steel – 2000 MW-Maithon Power Plant at Jharkhand – 1000 MW.
Tata Power also has other smaller business and also wants to enter shipping and logistics. Besides that Tata Power has investments valued at Rs 400+ per share of Tata Power. This works out to be Rs 10000 crore. Around 2012 – 2013, both Tata Power is expected to have similar capacity as Reliance Power.
The interesting thing is at current price of Rs 1457, Tata Power is valued at just Rs 30000 crore. Remove Rs 10000 crore of investments and you can have it only for Rs 20000 crore.
At Rs 900, Reliance Power will have market value of 200000 crores….6.67 times that of Tata Power. .
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Financials:
With 2300 MW capacity, Tata Power made standalone profit of Rs 700 crore in FY 2007.
With 28000 MW capacity, NTPC made standalone profit of Rs 6900 crore in FY 2007.
Lets assume Reliance Power turns out to be much more efficient than these two companies. Add to that increased power rates.
With 28200 capacity, assume Reliance Power makes Rs 15000 crore of net profit in 2016-2017. Power companies are considered as utilities and worldwide trade at 10-15 times their earnings.
Lets assume 15 times ratio for Reliance Power in 2016.
What will be its market value?
15000 X 15 = Rs 225000 crore or Rs 995 per share.
This is an optimistic view: -there will be no further equity dilution till 2016. -assuming nearly twice as much efficiency as NTPC.-that all projects will be completed before 2016 end.-the company would have paid back all debt by then and interest costs would be in similar range as NTPC.
(NTPC already has established 28000 MW capacity and comparatively much lesser interest costs. (NTPC’s P&L account states Rs 1800 interest cost for FY 2007).
So what about the debt?
The RHP mentions estimated cost of six projects Rosa I, Rosa II, Butibori, Sasan, Shahpur Coal, Urthing Sobla as Rs 30000 crore+.
Analysts estimate that Reliance Power will need Rs 70000 crore of debt to finance its projects which are estimated to cost 100000 crore+.
Rs 70000 crore of debt is not going to come at 2% interest rate. Even a 6% interest would mean an annual interest cost of Rs 4200 crore. Only in 2013, the company’s capacity will cross 10000 MW. Thus, I do not expect any major debt repayment before 2014. If things don’t go as planned, the debt burden will make a mockery of the balance sheet.
With Rs 12000 crore raised in equity and Rs 70000 crore of debt, these whole business will become a high-risk venture.
Any unforeseen delay/derailment of plans may create major problems for this company.
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Reliance Power – The Overlooked Fact:
Is Reliance Power just “Reliance Power”?
No.
It is actually “Reliance Power Limited” – a limited company.
So what does this mean for Reliance Power Limited?
It means if in the rare case, the calculations of the management go wrong and the company somehow goes to insolvency, none of the shareholders will lose anything expect the value of the shares.
If you are a share holder of Reliance Power and it goes into insolvency (unable to pay back debts), what do you stand to lose?
Rs 430 per share.
Lot of money….right?
What does Anil Ambani’s AAA Project or REL lose?
Both of them had got their 45% (post-IPO) stake for Rs 1000 crore each. Plus they will each subscribe to 1.6 crore shares each at Rs 450 in the IPO……which works out to be Rs 720 crore.
Thus, AAA Project will be getting 101.6 crore shares of Reliance Power for Rs 1720 crore and REL will be getting 101.6 crore shares of Reliance Power for Rs 1720 crore.
Little less than Rs 17 per share.
This is what both the promoters are risking in this project…. Rs 17 per share ; while investors will be risking Rs 450 per share.
This is exactly the reason why Reliance Power was created.
First, by contributing just Rs 1720 crore each to Reliance Power, the promoters have shifted all risk to investors.
Second, by getting 45% stake (in REL’s projects) to AAA Project for a mere Rs 1000 crore, AAA Projects (and Anil Ambani) have created wealth out of thin air.
Anil Ambani’s Rs 1000 crore investment will be worth Rs 100000 crore when Reliance Power lists at Rs 900.
If the gamble works, the promoters (holding 90% stake in Reliance Power) will be worth billions of dollars.
If the gamble doesn’t work, the promoters will lose Rs 1720 crore each and investors will lose Rs 10000+ crore which they will be paying for a mere 10% stake in Reliance Power.
What a way to create wealth…!!!….I don’t have words to describe the brilliance of Anil Ambani’s plans… .
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So what will I do with this IPO?
Firstly, I will subscribe to it,
not because I think it is a good company or is offering great value at Rs 430,
but because I am in this market to make money.
The markets are in such a frenzy, nobody bothers about valuations anymore……..not even QIB and other institutional investors.
Everyone knows that Reliance Power will list at a premium and thus everyone will apply….valuations can wait for some other day…. .
Everyone should wait till last day and apply for it. Just check the subscription levels by 11 AM on last day.========================================
What will I do post-listing?
For bigger IPO’s like Power Grid and Mundra Port, I have followed a sell-half-keep-half strategy.
Assuming listing at Rs 900, for Reliance Power, I will follow sell-all-keep-none strategy.
First, other companies are much cheaper.
Why should I keep a company valued at Rs 200000 crore -
when another company (with similar capacity by 2013) is available at Rs 30000 crore with much smaller debt burden and Rs 10000 crore worth of investments ………..referring to Tata Power.
If Reliance Power (at Rs 900) is available for Rs 200000 crore, why not buy NTPC for a similar price……Rs 225000 crore. NTPC plans to have a capacity of 66000 MW in 2017, while Reliance Power will have 28200 MW capacity in 2016.
Second, the risk is higher than other existing companies.
With marginally cash flows for next 5 years and Rs 70000+ crore of debt, the risk for Reliance Power is high. Tata Power and NTPC have existing cash flows to handle expansions….Reliance Power does not.
Third and the biggest factor is….the valuation of the company doesn’t make much sense.
Why should Reliance Power be valued at Rs 200000 crore, when in highly optimistic scenario, it will not make more than Rs 15000 crore of profit in 2016 ? Even if it touches that figure of Rs 15000 crore, its market value in 2016 will not be much more than 225000-300000 crore. (if given a 15-20 times multiple).
A fixed deposit will make more money than that in 8 years…..and that too without any risk.
Also, I got the optimistic Rs 15000 crore figure by assuming two times margins as NTPC.
The fact is….. at least till 2014, Reliance Power will still be carrying most of its Rs 70000 crore debt and its interest costs will squeeze margins to a large extent.
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Final verdict:
Apply.
I will be selling all shares at 9:55……….not even waiting for a better price.
If you want to try for a better price, hold at your own risk.
The level of insanity in the markets is at a high…
Value and risk mean nothing today….. price and profit are the keywords.
Who knows…..the stock may got to Rs 1100 or more.
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Addendum:
Reliance Power may win more projects in the future.
However, it is unlikely that any new project that Reliance Power gets will be commissioned before 2012. Additional projects will also bring additional costs too.
It doesn’t make much sense to consider future projects before they are actually won.
Also, Reliance Power is winning projects by offering very low rates – another factor that will decrease margins and increase risks for the company.
For example, in case of Krishnapatnam Ultra Mega Power Project, Reliance Power won with a bid of Rs 2.33 per unit.
L&T had bid Rs 2.69 per unit and Sterlite had bid Rs 4.19 per unit. Such aggressive pricing may backfire if costs rise due to some unexpected factors

Wanna be a gal…

A man was sick and tired of going to work everyday while his wife stayed home. He wanted her to see what he went through so he prayed: Dear Lord, I go to work every day and put in 8 hours while my wife merely stays at home. I want her to know what I go through, so please allow her body to switch with mine for a day, Amen. God, in his infinite wisdom, granted the man’s wish. The next morning, sure enough, the man awoke as a woman. He arose, cooked breakfast for his mate. Awakened the kids, set out their school clothes, fed them breakfast, packed their lunches, drove them to school. Came home and picked up the clothes for dry cleaning, took it to the cleaners, and stopped at the bank to make a deposit. Went grocery shopping, then drove home to put away the groceries, paid the bills and balance the checkbook. He cleaned the cat’s litter box and bathed the dog.
Then it was already 1pm and he hurried to make the beds, do the laundry, vacuum, dust, and then sweep and mop the kitchen floor. Ran to the school to pick up the kids and got into an argument with them on the way home. Set out cookies and milk and got the kids organized to do their homework, then set up the ironing board and watched TV while he did the ironing. At 4:30 he began peeling potatoes and washing vegetables for salad, breaded the pork chops and snapped fresh beans for supper. After supper he cleaned the kitchen, ran the dishwasher, folded the laundry, bathed the kids, and put them to bed. At 9 PM he was exhausted and, though his daily chores weren’t finished, he went to bed where he was expected to make love which he managed to get through without complaint. The next morning he awoke and immediately knelt by the bed and said, “Lord, I don’t know what I was thinking. I was so wrong to envy my wife’s being able to stay home all day. Please, oh please, let us trade back.” The Lord, in his infinite wisdom, replied, “My son, I feel you have learned your lesson and I will be happy to change things back to the way they were. You’ll just have to wait nine months, though”. “But why, My Lord?” the man asked. God replied,”You got pregnant last night.” DON’T YOU JUST LOVE IT? (Especially if you are a WOMAN…)Voted Women’s Favourite Email of the Year…