Though Reliance Power is not advised. Should you insist on the R-word. try buying it around 260 level. Thats the fair valued price, to which it is bound to fall to. Any hope of Reliance Power will come from Sasa power plant which is supposed to complete by Dec'09 only. Reliance Power is a complete project of Rs. 96000 Krore supposed to complete by Aug 2019. There are 11 Power Plants (its largest ever deviced plan for power generation). Anil Ambani has picked Rs. 11000 Krore from market by IPO. rest Rs 85000 Krore he has to get on debt, which will shoot his DER (debt-Equity-ratio) to 5 (that means he is worth Rs. 100 but he has taken loan worth Rs 500) Ideally speaking the DER of any company should be less than 1, means company can pay off its debt and return atleast purchase price to investors any time, which is not the case with Reliance Power. Its very scary situation for investor. Anil Ambani is selling just R-Brand that too he hasn't contributed anything to his father's name, he is just selling what Late D.B. Ambani created. At the other side of coin, if Anil is able to spin this gamble around, he will emerge as king of industry and share market (much greater than his father).
