"MUMBAI: Reliance Power has spent half of the proceeds garnered from its initial share sale but has not made much progress on the execution of its major power projects, according to Macquarie Equity Research. RPower had raised $2.5 billion in January 2008, from the largest IPO in the history of the Indian markets. The report, authored by analyst Jeff Evans, retains an underperform rating on the stock as he believes the current market value cannot be justified considering what it describes as the “risk around execution”. A lot of success is already built into the price, according to the report.
Mr Evans says that the bulk of the money spent in the past two quarters have not been on the five power projects highlighted in the prospectus, including the so-called ultra-mega power project at Sasan. Ultra-mega projects are large power plants capable of generating more than 4,000 mw. Such projects, awarded by the government through a tendering process, are a key component of India’s plans to ramp up generating capacity."......................
Mr Evans says that the bulk of the money spent in the past two quarters have not been on the five power projects highlighted in the prospectus, including the so-called ultra-mega power project at Sasan. Ultra-mega projects are large power plants capable of generating more than 4,000 mw. Such projects, awarded by the government through a tendering process, are a key component of India’s plans to ramp up generating capacity."......................
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