An Eye Opener About Upcoming Ipo of Reliance Power Limited

The reforms led to a dramatic improvement of the economic performances of India and all now aware that the government objective of achieving gross domestic products (GDP) has increased by 10% is achievable if economic reforms continue. India is certainly emerging as the first choice of investors, including domestic investors, foreign investors, financial institutions worldwide between nations and banks that the economy is booming and its celebration at the international level. As a result, unlisted companies are trying every day to float IPOs. India? The top 30 companies are responsible for the most notable jump in SENSEX and we are proud of them. But nobody tried to sneak a glance at the background work in companies, filing the prospectus with SEBI, seeking approval of their IPOs floating? Recently, a scam perpetrated by the promoters of Reliance Power Limited will be on investors throughout the world the issue of the company to enrich themselves at the expense of the gulli! ble public and how SEBI guidelines are diverted in a planned manner and conspiring According to SEBI? Guidelines, the promoter of unlisted companies (contingent mandatory for promoters in the grant more than a year) have to contribute in cash at a price of the IPO so that the promoters take the same financial risks that the IPO investors. The reference number is the lowest quantity "promoters contribution" to be worn by the promoters - Reference clauses 4.1 to 4.6 of SEBI (Disclosure and Investor Protection) Guidelines, 2000. As per clause 4.1.1 developers must contribute at least 20% of the capital after printing as a general taken by an unlisted company. According to clause 4.6.2 that the promoters have now contribute at least 20% at a price of the IPO, if they contributed during these 20% one year prior to the public offering. SEBI guidelines were instrumentalized to perpetrate a gross deception on the prospective investors in the IPO of Reliance Power Limited. Mr. Anil ! Ambani decided to float an office Reliance Power Limited in th! e last w eek of July 2007. Without risking his money in the project, he wants to always maintain a majority ownership in Reliance Power. The group had an envelope assembly called Reliance Public Utility Private Limited (RPUFL). RFUPL at that time had a paid up capital of Rs. 1 lakh. The authorized capital of RPUPL was increased to Rs 1,000 crores in a resolution dated July 30, 2007. Mr. Anil Ambani's personal investment company and Reliance Energy Ltd (controlled by Mr. Anil Ambani) will invest Rs 500 cr each in the capital of equity RFUFL August 3, 2007. RPUPL is still an empty shell with only Rs 1,000 crores of capital and Rs 1,000 cr investment. (The Rs 1,000 cr investment will normally be made only by Anil Ambani for businesses. Thus, no money had left the group). Simultaneously, RPUPL Reliance Power Limited and pass the necessary thing to merge in RPUPL Reliance Power Limited. Both companies file a scheme of merger in the High Court in Bombay during the first week of August 2007! , immediately after ie imbued liquor Rs 1,000 crores in RPUFL. The reason for the merger, as outlined in the scheme of merger is set RPUPL considerable effort necessary for the acquisition of technical skills and labor, which are related to the activity of Reliance Power Limited. Reliance Power Limited can take advantage of this specialized skill sets and technology with RPUPL profitable undertaking mega projects and their power more efficiently and successfully "(It should be not be able to understand from which the shell company with only one lakh Capital until July 31, 2007 acquired the skills to implement the mega power project. In fact REL one of the largest electricity companies in India was already a holder from Reliance Power and Reliance Energy genuine feeling technique has been used by Reliance Power bag mega projects command.) . The Bombay High Court approved the merger on September 27, 2007 and the order is filed with the ROC on 29lh September 2007 making the me! rger of Reliance Power Limited RPUPL into force from that date! . On Sep tember 30, 2007, Reliance Power Limited allocates shares of Rs 250 crores Two each of AAA and REL Project Venture Private Limited, who are the former shareholders of RPUPL. By inference of this stratagem, Mr. Anil Ambani and both acquire REL, September 30 2QO7, 250 crores Reliance Power shares for each guard rupees. Only 1,000 crores, which was also introduced in RPUPL only on 3d August 2007 ie within one year prior to the public offering. These actions 250 crores Reliance Power, which were attributed to Mr.Anil REL Ambani's personal investment company and in accordance with the branch apparently becomes eligible for the exemption under clause 4.6.4 of SEBI (DIP ) Guidelines Regarding the contribution by the promoters. Thus, Mr. Anil Ambani, as a promoter of Reliance Power, has avoided investing a huge amount of promoter's contribution to the IPO passed on the price and risk of unmingled position with potential investors to its staff earnings. It is obvious that the High Cou! rt was not aware of the ulterior motives behind the merger of RPUPL, a shell company Reliance Power. The merger was approved by the High Court, on the basis of facts and control actions since the holders of two RTUPL Power Limited and Reliance would have approved the merger. Shareholders of both Reliance Power and RPUPL are Sh Anil Ambani? Business Investment and a representative of Reliance Energy. Reliance Energy owns 50% of Reliance Power. The merger formulate never been taken to the shareholders of REL, which would presumably have questioned the need for and focused on the advantages and disadvantages of the merger of a reservoir with Reliance Power Limited. Issued in the press indicate that Reliance Power plans to raise about Rs 130 crores 8,000 crores by issuing equity shares of Rs 2 each. Thus, the issue price per share approximate fairness should be Rs. 60 per share. Mr. Amabni Anil, as one of the promoters for the acquisition of 113 crores shares (10% of the capita! l after issuance according to the prospectus), at a price of R! s 50 per share should have invested Rs 6,780 crores. In this context, misuse by the exemptions in the SEBI guidelines for the true intention of the merger, it has acquired 10% of what Rs 690 crores. In fact, the underwriting by Mr. Anil Ambani Rs 8 crore participated in the IPO compensation is an eye to divert attention from the public. Thus, the expenses of prospective investors M. Anil Ambani will gain about Rs 6,000 crores (assuming the IPO reward to Rs 60 per share). In fact, according to Clause 3.7.1 (i) of SEBI guidelines, a company can not make a public issue of Rs. Two share par value at a price of less than Rs 500 each. Thus, in case questions Reliance Power shares at a price of Rs 500 per share, Mr. Anil Ambani will gain more than Rs 55,000 crores to the detriment of the future, investors of Reliance Power. Thus, the total loss will be in the future investors in Reliance Power will be Rs 12,000 crores (assuming IPO price at Rs 60 per share). If the price is Rs IPO. 500 man! dated by SEBI regulations, the losses for potential investors will be Rs.1, 10,000 crores. In fact, the loss will be great for the community that will invest in the public offering and the public financial institutions and banks that invest in the common man? Money in this public issue. The above facts clearly report a fraud perpetrated on investors and SEBI should immediately put an end to the issue public and not to approve the prospectus. If SEBI approves this prospectus, it will be a great disservice to the future in matters of public interest investors said SEBI would not be fulfilling its responsibilities in a proper manner. It will set a dangerous precedent. From now on each promoter of India would subvert SEBI (DIP) guidelines in the same way and if SEBI approves this prospectus, they can not always deny any future results community made in the above manner. Indeed, if the public is allowed, it may rear serious questions about the effectiveness of the regulatory fra! mework of capital in the Indian capital market. The Department! of the company should not also left idle spectator in this matter and should make use of all the powers to stop this fraud poor gullible potential investors in Reliance Power. Master Card gift card
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