IPO Rocket.com

Delaine asks:

Mumbai, India: Reliance Power Limited (RPL), proposes to come up with a Public Issue of 130 Crore Equity shares of Rs.2 each. Draft Red Herring Prospectus (DRHP) has been filed with Securities and Exchange Board of India (SEBI) for the RPL IPO, expected to be the biggest issue in the Indian stock exchange.

Mr. Veekay Arora, Spokesperson, REL Investors Forum has written on October 26, 2007 an open letter to the independent directors of Reliance Energy Ltd.

Kind Attention: Gen.V.P.Malik , Leena Srivastva & V.R.Galkar

Reliance Energy Limited

Reliance Energy centre

Santa cruz (East)

Mumbai -400055

FAX 022-30099763

October 26, 2007

Open Letter To Independent Directors Of Reliance Energy From Investors

Dear Sir/Madam

1. As independent directors on the board of Reliance Energy, did you support the move to transfer all power projects of REL to Reliance Power?

2. Did you not feel it unfair on small investors (public) and FIs to transfer existing and all future revenue earnings of Reliance Energy to Reliance Power?

3. Do you know that Reliance Energy did not inform the stock exchanges about transfer of projects to Reliance Power — a development affecting its future earnings?

4. What have you done to protect the interests of small investors (public) and FIs in Reliance Energy?

5. By your silence are you not supporting the moves of promoters to transfer assets of Reliance Energy to Reliance Power without a care for the views and interests of the shareholders?

6. Did you know about the merger of Reliance Power with Reliance Public Utility Private Ltd and that approval for the merger was obtained from Mumbai high court without disclosing the Reliance Power IPO plans?

7. Don’t you think that the role of independent directors is to ensure that corporate governance norms are never violated and public trust is always upheld. Can this objective be achieved by keeping quiet when rules are flouted as in the case of Reliance Energy-Reliance Power?

Investors of Reliance Energy and all small investors across the nation would like to know if their interests are being protected by independent directors or is their role really just to serve corporate interests?

Highest regards

Veekay Arora, Spokesperson, REL Investors Forum

Patrice asks:

I ‘ve often seen company diluted common shares. Can they dilute the preffered shares as well? Is this legal once the company has already IPO ?

Jay asks:

I know those are fairly rare these days…but how can I get a hold of stock (prior to an IPO)?

Any ideas? It sounds as if it’s the “luck of the draw” sort of thing…thanks!
what kind of money would you think one would need to put down? 10k? 25k? 100k? more?
ok thank Thin…I was told that about 30 minutes ago too by a broker…

Rasheeda asks:

Or is it referring to private citizens’ equity?

Barbera asks:

VISA will trade on the New York Stock Exchange under the symbol “V”. Word on the financial markets is that “V” will launch by February ‘08, although I’ve heard that it may debut as soon as mid-January. Knowing how well “MA” has done in a year and a half, what is your forecast as to how well “V” will do for the long term growth for someone’s portfolio?

Elenora asks:

I heard rumors they are going to postpone it due to the current market conditions. Does anyone think it is worth buying into, or will it turn out to be another disappointing ipo like blackstone ipo?

Aundrea asks:

What I am trying to determine is the total investment that has been required, not just the $7.5m eBay has received pre-IPO. In other words, how much would it cost to build eBay (if eBay didn’t exist already) …

Sherril asks:

I heard that’s what investment banks do. But isn’t that what venture capitalists and VC firms do?

Rafaela asks:

I know nothing about stocks, so use simple terms. But an up and coming company that I’m a customer of has asked me if I want to buy 100 to 5,000 shares. I’m struggling financially but I really believe in this company. Should I invest? Can I re-sell my stocks that day? Will it be hard to contact someone with the “limited purpose brokerage account” I’ll be set up with? I’m thinking once they open everybody is going to go nuts and buy their stock. Does that happen? I don’t know how this process works at all. Thank you for your thoughtful advice.