Sunday, February 17, 2008

Ada does a rajini!

After Baba, a lot of distributors who had blindly believed the rajini magic lost money. Rajini was the producer of the movie as well - so he did something which had not been done before - he just returned back the money to the distributors so that they still kept faith in the R Word! Now after the reliance power debacle I was wondering what would ADA do. Reliance is pretty much built on the retail trust - institutional investors rarely say nice things abt the company and it was Dhirubhai Ambani's faith in retail investors that made the company/group what it is today and if ADA sat quietly then the retail investors would go away atleast from his group. Moreover with another of his group companies coming up for listing - reliance infratel - he had to do something to ensure that issue doesnt bomb and voila he has decided to give free shares to reliance power investors - but it probably wont solve the problem for long term investors - for short term traders this is a good sign - with no revenues and profits and only projects that open in 2012 onwards - any price is expensive for the stock right now! He could have probably given RPower investors a discount in the Rel Infra issue - but he will still manage to regain some of the faith that retail investors had in the group.