$2.5 bn in Market Cap, 37 Institutional holders with 8.3% stake and a new 10 mmscmd gas supply agreement will easily merge into the new Reliance Power/ Reliance energy behemoth and get to the business of creating assets and revenues..
Rpower or the new Reliance Energy will be 80% owned by Anil Ambani and another 5% institutional shareholders. The merger ratio of even a lenient 3:1 will bring down the public portion of equity towards Reliance Power's current 7%, shareholders might even be happy with such a structure in which case the implied value of Reliance Power is nearer 260 per share or $6-7. RNRL has around 165 crore shares issued and Reliance Energy 232 Cr. The combined entity will hold around 280 crore equity shares at 3:1 and 272 crore shares at 4:1 with ttm revenues of INR 7bn or 700 crores and 2014 revenues likely to be nearer the predicted $10bn
REUTERS INSIGHT Reliance Power Limited (RPower) is part of the Reliance Anil Dhirubhai Ambani Group. RPower is engaged in the development, construction and operation of power generation projects with a combined planned capacity of 33,480 megawatts. The Company is developing 3,960 megawatts Tilaiya Ultra Mega Power Project located in the State of Jharkhand. RPower is developing 16 large and medium sized power projects with a combined planned installed capacity of 33,480 megawatts. The Companies subsidiaries include Sasan Power Limited, Rosa Power Supply Company Limited, Maharashtra Energy Generation Limited, Vidarbha Industries Power Limited, Tato Hydro Power Private Limited and Siyom Hydro Power Private Limited. In May 2010, the Company acquired three power plants with a total capacity of 433 megawatts from Reliance Infrastructure Ltd.
RPower's part owner, owning half or 40% of the promoter stake for Anil Ambani is Reliance Industrial Infrastructure which is currently implementing the Mumbai metro is three phases, the first two phases on the really weak east west link in the metro for a total cost of $524m and $2.2bn respectively. RIIL also owns Rajdhani Power and BSES in Delhi and Bombay and is also commonly refered to as Reliance Infrastructure just like RIL's Reliance Infrastructure Limited
Rel Infra has also bid and implemented 16 highway projects including the Eastern Peripheral Expressway in Delhi for $524m where it was the sole bidder having scouted local land for an SEZ
