News has it that ADAG group will meet on 4th July to decide on RNRL merger with RPower.
RPower IPO was a flop.
It still hasn't recovered its original price and we still have investors awaiting it to rise to IPO (cum bonus) price to sell off.
Add to that, the news of this merger.
Whom does it really benefit?
RNRL was founded to get gas from KG basin and provide it to RPower and RInfra.
The difference in price was the profit. Add to it, it has been allotted 4 CBM blocks (old news reference).
With RIL winning the Supreme court case, RNRL will not make trading profits.
Thus, it is being merged with RPower.
According to book value: Merger should be in the ratio 5 (RNRL):1 (RPower)
According to market cap: Merger should be in the ratio 4 (RNRL):1 (RPower)
According to market last close value: Merger should be in the ratio approx 2.5 (RNRL):1 (RPower)
Investors who may have purchased RNRL @ 20 odd levels may be happy and may sell off RPower as soon as they get those shares.
Whatever be the ratio, if its anywhere like 5:1 or 4:1, expect a downfall in RNRL on Monday (5th July).
5th July is a Bandh in India, can we pray for a RNRL trading-bandh on 5th July.
If wishes were horses...........
RPower IPO was a flop.
It still hasn't recovered its original price and we still have investors awaiting it to rise to IPO (cum bonus) price to sell off.
Add to that, the news of this merger.
Whom does it really benefit?
RNRL was founded to get gas from KG basin and provide it to RPower and RInfra.
The difference in price was the profit. Add to it, it has been allotted 4 CBM blocks (old news reference).
With RIL winning the Supreme court case, RNRL will not make trading profits.
Thus, it is being merged with RPower.
According to book value: Merger should be in the ratio 5 (RNRL):1 (RPower)
According to market cap: Merger should be in the ratio 4 (RNRL):1 (RPower)
According to market last close value: Merger should be in the ratio approx 2.5 (RNRL):1 (RPower)
Investors who may have purchased RNRL @ 20 odd levels may be happy and may sell off RPower as soon as they get those shares.
Whatever be the ratio, if its anywhere like 5:1 or 4:1, expect a downfall in RNRL on Monday (5th July).
5th July is a Bandh in India, can we pray for a RNRL trading-bandh on 5th July.
If wishes were horses...........
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