RIL likely To Bid For Mega Power Plant (16-Jun-2010)
Reliance Industries is quite bullish on the power sector and plans to cash on the huge opportunities lies over there and for this the company plans to build at least one power plant in the country.
This will make the company''s foray into commercial electricity generation, two company officials said.
Moreover, the company is charting out strategy in order to bid for a 4,000-megawatt coal-fired plant in eastern India. The total cost for this project may be as much as much as Rs 16,000 crore ($3.4 billion ), according to officials.
Meanwhile, the government of India has shortlisted two mega power project- one in Chhattisgarh and the other in Orissa. For this, the bids has been invited by the government for a 4,000-mw project in Chhattisgarh by July 5 while for the Orissa project by July 30.
The decision by Reliance to diversify into the power generation comes on the back of concluding a non-compete agreement by Mukesh Ambani with Anil Ambani On May 23. So this decision follows the June 11 decision to purchase a wireless internet services company for $1 billion as it seeks to expand beyond refining oil, making chemicals and natural gas production.
Meanwhile, Reliance Industries (RIL) is planning to bid for the 4,000-mw Surguja ultra mega power project (UMPP) in Chhattisgarh. The Chhattisgarh entry would be RIL''s second major diversification plan. The government has set July 5 as the deadline for submitting the bid.
''Some 2,500 acres are needed for the central government''s fifth ultra mega power project that will come up in Udaipur and Premnagar blocks of Surguja district,'' an official statement here said.
The government said some 1,200 acres are required for the main power plant, 1,000 acres for the ash dam, 200 acres for water conservation and 100 acres for a housing complex.
Meanwhile, the company had outstanding debt of about Rs 62,500 crore ($13.4 billion) and cash and equivalents of Rs 21,870 crore as of March 31, the company said in April.
Reliance Industries is currently trading at Rs.1060.8, up by 0.32% at 9.42 AM on BSE.
The stock hit an intraday high of Rs.1066.5 till now, as against the 52-week high of Rs.1184.7.The stock hit a low of Rs.1058.8 during the day. The stock had hit a 52-week low of Rs.840.55 on June 1, 2010.
The stock opens at Rs.1060.5 at BSE. The total traded volume of the scrip on BSE till now stood at 132682.
Meanwhile today, the BSE Sensex is trading down by 13.68 points, or 0.08%, at 17449.19 on 9:42 AM
The NSE Nifty is trading down by -8.55 points, or -0.16% , at 5224.8 on 9:25:
RIL has an equity capital of Rs 3,270.37 crore as of 2010 March. The face value per share is Rs 10. At the current price of Rs 1060.8, the P/E multiple stood at 21.3399403754734 with book Value of 392.51 and P/BV at 2.70.
The total shareholding pattern of the company as on Dec 2009 stood at Promoters- 46.57%, Institutional Investors- 26.45%, General Public- 12.57% and other investors- 14.41%.
Considering the current price of Rs. 1060.8 at 9:42:00 AM, the stock had outperformed the market over the past one month till 17/06/2010 surged 3.93% as compared to the Sensex''s return of 3.4% and NSE Nifty''s 3.13 % returns.
Considering the current price of Rs. 1060.8 at 9:42:00 AM, the stock had underperformed the market over the past one quarter till 17/06/2010 declined 1.22% as compared to the Sensex''s return of 0.22% and NSE Nifty''s 0.38 % returns.
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