Biting dust is not a sweet experience. Especially so when it concerns none other than the ADAG Group of Anil Ambani. He is one of the richest persons in the world, and only he can be the right claimant to the audacious quote he made in ET: “Jab haathi ki sawaari nikalti hai to kutte bhonka karte hain (When elephants walk, dogs can only bark).”
Successes are however not always scripted on mere wishes. Many a time they need solid base to firmly stand on, which was something that was missing in the recent RelPower IPO.
Let’s however make no mistake. No one is saying RelPower will not succeed. In fact so huge is India’s power requirement that is leapfrogging every single moment that it’ll be a miracle if efficiently run power companies don’t make money for a long, long time to come.
Anil Ambani has efficiency in abundance. He is extremely ambitious, and an excellent manager of giant projects. After all in just a little less than 3 years, his ADAG group has vaulted in market cap from Rs.15,000 crore to the present mind-numbing Rs,3,25,000 crore.
With that in perspective, the failure of RelPower to sustain the issue price on listing is a serious blot. Perhaps that is the reason why the company is mulling bonus shares to the new shareholders – kind of averaging out the price disadvantage.
When that happens, it will go down as the first and a rare incident in the history of Indian stock market.
The saying however goes that the main reason for the unexpected bonanza is because the group is likely to come out with several mega offerings (IPOs’) later in the year.
Obviously the ADAG group does not want to antagonize the small shareholders who have been the mainstay thus far with nearly all Reliance group’s IPOs.
Meanwhile, the common refrain among small investors like me is that we need not bother with what the behemoths do. We’re happy we’re getting some shares free. Long live Anilbhai.