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Adani power IPO , should we subscribe ?

dipak's picture
Submitted by dipak on July 25, 2009 - 00:06

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Submitted by rahul das on July 27, 2009 - 01:46. #

YES YOU SHOULD SUBSCRIBE TO THIS AT 100.

This is going to be a winner . Go ahead and subscribe for this.

 
Submitted by dipak on July 25, 2009 - 00:59. #

Adani Power that is slated to open on July 28.The price band has been fixed between Rs 90 and 100. At Rs 100 per share, the valuation of the company with a total of 2.18 billion shares comes to about Rs 21,800 crore.

To give some confidence to common investor as usual they allotted some shares to 3i and other investors from Mauritius .

Why does Adani want money
-------------------------
1. Finance Mundra power project (4620 MW Thermal Power)
Will be done in 4 stages

2. Tiroda power project ( 1980 MW Thermal Power)

To produe thermal power they will need coal .. according Adani it will be imported. Mostly from indonesia.

Power is very political issue not only in India but around the world. India being a power deficient country , govt will have emphasis on it but ..

The issue is good for short term investors . Invest at Rs 100 and if you see 30-405 gain on listing or in few months , get out.

There are better power companies available in market ..
like Tata power

One good thing about Adani is that it is coming from Gujarat , gujarat govt is not only business friendly it helps it investors. That is a definite positive for adani .

Now key question , does adani power has any profit today , if not when will it be profitable ?

well we all know that power companies need lot of money to setup the plant and it takes a while to start generating profit . I am not big fan on power companies . Instead i would buy stocks of companies who will supply material to Adani ..

1. Who will supply power transmission towers
2. who will supply coal
3. transformers and other equipment

These companies will see profit much earlier then Adani .

Still we will recommend Adani power due to better market sentiments and better sentiments for power in particular. But remember to book profit ..

Can adani be next reliance ? .. interesting question ..

 

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