I do not agree. On the other hand, RIL is aggresive towards acquireing overseas companies such as LyondellBasell. If that happened, it will be a mile stone for RIL. After all, LyondellBasell is the 3ed largest petro chemical company of the world.Moreover, it is also footing its steps in realty sectors. MADURGA ...

pyaretaj - Now if the crude prices fall then retail adds to the bottomline and if GRMs go up then that is much bigger for RIL. Anyway eventually the petrol bunks had to be activated to sell gas and to promote more and more automobile users to switchover to gas. The retail margin in gas will be tremendous. Awaing the outcome of the HSC decision which will be anytime soon....

pyaretaj - Here learned Ram Jethmalani may be a noted and imposing cousel howver this is not at all part of the case in HHC. HSC may order trial and full evidence before HHC to go through the MOU in its entirety and tehn give a decision. RIL has had no chance to defend this angle of the matter and so this matter will drag on and on and on. I would however have no objection if for the sake of peace Anil Ambani comes back in his earlier position if that will buy peace and it would be at Mukesh`s shareholding. So another 10 years to go?...

Taj - Thanks I read all your post. Your vigilance is a big help on this MMB....

pyaretaj - May be connected with getting crude from CAIRN INDIA and also for sale of its KG D6 gas from petrol pumps. Timing of this and the timing of the acquisition seems to be on the dot. Anil Ambani was in HSC today showing off his hadsome and honest face. Mukesh Ambani was in the USA with the due diligence being carried out on a war footing. Certain analysts have calculated that RIL is likely to finalise the deal several months from now. Mukesh has given an estimate that it would be before February, 2009 maybe to throw some competition off the scent. Maybe we will have the positive news much earlier. Since neither Mukesh nor RIL ever divulges its secrets RIL does surprise more often than not. The gas dispute has suddenly become a much smaller issue for RIL....

can you post your views on JSL..?...

How U r seeing closing Today Mkt. Considering the following matter: - 1. Expiry r about to near 2. 4900 & 5000 Put options r most active derivative today 3.Profit Booking 4.Mkt r not seeing to cross 5080 level 5.FII selling cash drivatives My opinion is Mkt can fall due to profit booking . Nifty can break 5000 level and sensex can break 17000 level. Its my opinion. Please also share ur opinions in this matter And Chief - Kamani Analysis was perfect for friday mkt. ...

Reliance Industries (RIL) has target of Rs 1300-1400, says Ambareesh Baliga of Karvy Stock Broking.

Baliga told CNBC-TV18, "On Reliance Industries we have been bullish for quite a while although it’s been in that range of Rs 1,800-2,200 and now the range will be Rs 900 to Rs 1,100-1,150 maximum. So in the short-term one need to play in that range but longer-term clearly we have our targets around Rs 1,300-1,400. Possibly once the acquisition is made and that goes through at a decent valuation then possibly we could see levels of Rs 1,700 ex-bonus."
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NEW DELHI: With global oil rates stabilising at around $70-80, Reliance Industries , Essar Oil and Royal Dutch/Shell today joined the chorus for freeing petrol and diesel prices to give private sector a level playing field as also lower government`s subsidy burden.

Freeing prices would mean a Rs 3.85 a litre increase in petrol and Rs 3.71 per litre hike in diesel rates but the move would help state firms who are reeling under severe financial constraint in absence of promised subsidy from the government. In separate presentations to the Kirit Parekh Committee on Fuel Pricing Reforms, the three firms said oil sector was the only sector where subsidy was limited to public sector firms, driving private competitors out of business.

"If prices are not freed, private sector should also be treated at par with PSUs (and given subsidy)," RIL said.

State-run Indian Oil (IOC) favoured freeing auto fuel pricing but wanted the Government to first commit upfront to meet in cash the revenue lost on selling LPG and kerosene. Oil and Natural Gas Corp (ONGC) said it was willing to share fuel subsidies but the mechanism should be transparent wherein incremental revenues it earned beyond a pre-decided threshold can be automatically parted for the same.

Currently, upstream firms like ONGC are asked to pick up the revenue retailers IOC, BPCL and HPCL lose on selling petrol and diesel. The revenue they lose on LPG and kerosene are met through issue of oil bonds but none have been issued this fiscal.
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MUMBAI: The state-run energy giant ONGC has once again emerged as the largest corporate entity after corporate behemoth Reliance Industries witnessed a sharp decline in its market valuation, pushing it to a distant third, as the company went ex-bonus today.

At the end of today`s trade the market capitalisation of Oil and Natural Gas Corp stood at Rs 2.51 lakh crore, much ahead of the incumbent market leader Reliance whose m-cap stood at Rs 1.74 lakh crore. In the latest pecking order on the BSE, three of the four largest companies are state-run entities--MMTC at the second most valued firm with a market capitalisation of Rs 1.75 lakh crore, and NTPC at the fourth position with an m-cap of Rs 1.73 lakh crore.

The ONGC counter today settled at Rs 1,174.75, down 0.41 per cent on the Bombay Stock Exchange, but the decline was not as sharp as Reliance`s which went ex-bonus. RIL closed at Rs 1,064.60, down by over three per cent from the opening price on the BSE. ...

NEW DELHI: Mukesh Ambani-led Reliance Industries today said it is selling about 2,000 KL of petrol and diesel everyday from about two-thirds of its 1,432 petrol pumps.

RIL President, Refinery, P Raghavendran said the company was operating about 900 petrol station mostly in western and southern India where it can match the subsidised rates of public sector firms.

PSU retailers sell petrol and diesel at Rs 3-4 a litre lower than cost, making fuel retailing business unviable for private firms in most part of the country.

"We are selling where we can match PSU price," he said.
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MUMBAI: Reliance Industries plans to fund its acquisition of the world’s third-largest petrochem company LyondellBasell Industries (LBI) by selling treasury stock and dipping into its cash reserves without taking any additional debt on its balance sheet, rating agency Crisil said on Tuesday while re-affirming its ‘stable’ rating on RIL’s debt. Crisil said that Mukesh Ambani-led firm had told it that, post-acquisition, LBI would have a conservative capital structure, with gross debt-to-equity ratio not exceeding 0.75 times. No additional support would be required from RIL, Crisil said.

The rating agency said its description of RIL’s plans to finance the acquisition of LBI and the foreign company’s post-acquisition debt structure was based on its discussions with the management of India’s largest private sector company. When contacted, RIL’s external spokesperson said the company had nothing more to add to its Saturday statement which said that it had submitted a non-binding all-cash preliminary offer to buy a controlling stake in LBI. RIL is sitting on a cash reserve of $4 billion and treasury stock worth $8 billion.

Although RIL did not disclose the possible size of the transaction, it is estimated to be around $12 billion in enterprise value. Enterprise value is calculated as equity plus debt, minority interest and preferred shares minus total cash and cash equivalents.

Crisil said RIL’s cash levels would be replenished soon as the accruals remain strong. “The rating outlook will be revised to negative if RIL extends any financial support to LBI, or if RIL’s debt levels increase either because of a change in the value of the acquisition or any change in the financing plan.”

The acquisition, if consummated, would enhance RIL’s topline to $80 billion, bigger than the industry leaders like Dow Chemicals. Crisil said the successful acquisition would make RIL one of the largest integrated chemical companies with a well-balanced portfolio in petrochemicals, refining and upstream exploration and production.
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NEW DELHI: Reliance Industries has been allocated 2.34 mmscmd of gas from its KG D-6 fields to meet just about one-fifth of the gas requirement at its twin refineries at Jamnagar in Gujarat.

RIL had sought 11.80 million standard cubic meters per day of KG D-6 gas to meet feedstock requirement at its twin refineries but it got only 2.34 mmscmd. An Empowered Group of Ministers (EGoM) had on October 27 allocated one-fourth of the additional 20 mmscmd gas that RIL is ready to produce from KG-D6 to refineries.

"Refineries had projected a demand of 25.20 mmscmd but since the EGoM allocated only 5 mmscmd, the same has been allocated on pro-rata basis," an Oil Ministry official said.

State-run Indian Oil got 1.6 mmscmd while HPCL and BPCL have been allocated 0.26 and 0.20 mmscmd respectively. Private sector Essar Oil would get 0.60 mmscmd against a demand of 3 mmscmd for use at its Vadinar unit in Gujarat. RIL, which had so far not been allocated any gas from KG D-6, is currently buying imported liquefied natural gas at 60 per cent premium to the price of gas from its own block in the Krishna-Godavari Basin.

Of the 20 mmscmd, 12.9 mmscmd has gone to power plants, the official said, adding the new customers notified to RIL include state-run NTPC who has been given 2.71 mmscmd. The government had previously fixed users for the first 40 mmscmd output from KG-D6 fields which has transformed the electricity scenario and boosted growth. Of the initial output, 18 mmscmd had gone to power plants.
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NEW DELHI: Anil Ambani is legally entitled to be reinstated vice chairman of Reliance Industries Ltd (RIL) if its de-merger on the basis of the family pact fails, counsel for Reliance Natural Resources Ltd (RNRL) told the Supreme Court Wednesday.

The failure of the de-merger scheme also exposes RIL to the prospect of being wound up, said Ram Jethmalani, counsel for RNRL, while arguing before the three-member bench that is hearing the high-profile Krishna-Godavari gas dispute case.

"This will not be in the interests of millions of RIL shareholders ," the counsel told the bench of Chief Justice K.G. Balakrishnan, Justice B. Sudershan Reddy and Justice P. Sathasivam. "Under Section 392 of the Companies Act, if the scheme is not implemented, as envisaged, Anil Ambani is entitled to be reinstated in RIL board with full powers as existed before the July 27, 2004 board resolution." Prior to that, Anil Ambani was vice chairman, managing director and on the board of RIL.

The senior counsel said since Anil`s elder brother Mukesh is chairman of the company and its "alter ego" now, neither he nor the company were entitled to take the position that the family reorganisation pact was not known and take exemption from its liabilities. He said the RIL board resolution of July 27, 2004, virtually stripped Anil Ambani of all powers, status, honour and dignity while giving complete control to Mukesh Ambani. "This was the source of both anger and humiliation for Anil Ambani," he said.

"As promoter-director -- lifetime director -- Mukesh Ambani is not liable to retirement and does not require the resolution of shareholders," said Jethmalani. Accordingly, RIL cannot claim that the family business reorganisation pact brokered by Kokilaben, the widow of the empire`s founder Dhirubhai Ambani, between her two feuding sons, is not binding on the company. "The court has the power to supervise the scheme (of de-merger) which definitely ensures all hurdles are removed in the proper implementation of the scheme, particular those arising from dishonest conduct."

The three-member bench has been hearing the dispute over the supply of 28 million units of gas for 17 years at $2.34 per unit to Anil Ambani-led RNRL from the gas fields off the Andhra Pradesh coast, awarded to Mukesh Ambani`s RIL. The price, tenure and quantity were based on the 2005 family pact, but RIL subsequently said it could only sell the gas for $4.20 per unit, as this was the price, the company claimed, fixed by the government.

The Bombay High Court had earlier ruled in RNRL`s favour.
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Hi guys,

I am posting these essential points for successful long term investment strategies to those who are underpriviliged in market investment strategies. Hope all professionals here will not have any negative views on my posting, as this is only for those who are new in markets and who wish to invest in RIL for long term:

Rule 1: Begin with a prayer
Prayer helps you think clearly and make fewer mistakes.

Rule 2: Invest for maximum total real return. Many investors get carried away by short-term movements. They tend to ignore the long-term opportunities. Thus, it is wise to invest for total real returns.

Rule 3: Remain flexible and open-minded
Flexibility comes from being agile. Open-mindedness is learning from new ideas and perspectives. Many old-timers missed India`s IT sector growth in the early 90s, which gave multi- bagger stocks like Infosys and Wipro. Cut to early 2005, many people were enamored with IT sector. They neglected the infrastructure and banking sectors, whose stocks multiplied within a couple of years. Hence it is important to be flexible and open-minded.

Rule 4: Invest, do not trade or speculate
Almost all successful people in the stock market are investors and not traders. They invest for long-term and are patient. There are many investors who have become millionaires solely on return of one stock in their portfolio over a decade. Sure they bought lot of other stocks which went nowhere but the one or two stocks that did well made all the difference.

Rule 5: Search for bargains
Just as we buy garments at discount sale, we need to buy and not sell stocks when markets are crashing. In October 2008, many high dividend yielding stocks were sold for meager amount. People who bought them have reaped huge profits.

Rule 6: Don`t buy market trends or economic theories
Remember the India story told when the sensex was at 21,000 and markets dipped to 7,500 within a year. The boom gave way to gloom, economists and market experts were expecting a correction not a crash.

Rule 7: Diversify across assets and across markets, there is safety in numbers. Last year, when stocks dipped, gold and bond mutual funds thrived, an investor who had invested across all three assets would have got negative return in stocks but would have made good returns in bonds and gold. To spread risk, investments should be diversified across assets such as:
- Stocks / equity mutual funds
- Bonds/ bond mutual funds
- Gold/ gold exchange traded funds
- Real estate
- Foreign mutual funds
- Traditional assets such as fixed deposits and public provident funds.

Rule 8: Do your homework or hire experts who will do it for you. Some of us invest based on tips and rumors, that is speculating not investing. You should read and research all investment ideas well, take time to understand the upside and downside of each investment before buying.

Rule 9: Aggressively monitor your investments
No investment is forever. Expect change and react to it. There are no permanent bull market and bear market.
Way back the BSE Sensex had bluechip companies like Scindia Steamship, Asian Cables, Crompton Greaves, Mukand Iron, and Premier Auto. Today, these companies have become small or midcaps. Some are not even quoted. Indices and markets keep changing. Investors should be on guard always.

Rule 10: Don’t Panic
Many people panic and exit the market when there is a dip. It is better to sell before a crash not after. Panic and euphoria are the two facets of same investors. Both selling after a crash and buying after a huge rally make no sense.

Rule 11: Learn from your mistakes
The only way to avoid mistakes is not investing which is the biggest mistake of all. Those who didn`t invest after losing money in 1994 crash wouldn`t have made money in 1999 boom. Those who lost money and exited in 2000 would have missed one the best times to invest in India from 2002 - 2008.

Rule 12: Beating the markets is a difficult task
Even professional fund managers have tough time doing it.

Rule 13: Buy low
So simple in concept, yet so difficult to practice. Humans tend to think in herds and not alone. Only a brave person would have invested in October last year when people were shell shocked and wanted to forget about stocks.

Rule 14: Anyone who has all the answers doesn’t even know the questions
Markets make even the most brilliant fund managers humble. We have seen big fund managers make wrong decisions.

Rule 15: There is no free lunch
Never invest based on a tip or rumor. Everyone talks about their profits however small and no one talks about their losses however big.

Rule 16: Do not be fearful or negative too often
There will be corrections and crashes in the markets, but markets do recover and reward diligent and patient investors. This century or next it`s still buy low and sell high.
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MUMBAI: On November 17, when chairman Mukesh Ambani addresses Reliance Industries’ annual general meeting, he is likely to announce the group`s next foray: EDUCATION.

India’s biggest business house is planning to launch a private university in line with the Ivy League institutions, says a company insider, though the contours are yet to be finalised. And for a country betting on its demographic dividend, that would be good news.

Already populated with corporates such as the Birlas and the Mahindras, besides private equity players and institutional investors, the sector can absorb a lot more by way of private investment.

According to an IDFC-SSKI report, Indians spend billion annually on private education. The four segments of the education market — plus two, higher, vocational and supplemental — present a -billion opportunity by 2012. It is expected to grow at a CAGR of 16%, says a CLSA Pacific study.

“Mukesh envisions bringing global education to India. He will outline a road map for the business in the AGM speech,” says an official close to RIL who did not wish to be named. An RIL spokesman declined to comment.

The contours of RIL’s plans are yet to emerge, but another power house, the AV Birla Group, has already played its hand in commercial education with its Sarala Birla Academy in Bangalore. It has plans to open schools to offer modern education to students in the country’s hinterland.
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IF you had bought 100 shares of Wipro at the rate of Rs 100 per share in 1980, they would be worth Rs 200 crore (Rs 2 billion) today.

If you had invested Rs 10,000 in Infosys shares in 1992, you would be richer by Rs 1.5 crore (Rs 15 million) today.

If you had invested Rs 1,000 in Ranbaxy in 1980, you would have got Rs 1.9 crore (Rs 19 million) today!

And not so far back in time, if you had invested Rs 40,000 in Unitech during the lows of 2004, your bank account would see a whopping Rs 1.1 crore (Rs 11 million) today!

Some guy out there knew this. Today, he is laughing all the way to the bank. So what was the magic strategy that made this guy so rich? Simple.

He bought, he waited:

Waited for all those share splits and bonus declarations.

Waited for the company to grow from strength to strength.

Waited even when the shares teetered only to recoup in a few years` time.

Just as a child takes time to realise his/ her full potential, so does an investment need time to reward you handsomely.

Sure, the times are uncertain now. But let that not scare you to sell for a loss.

Patience pays:
Look back. You will notice that selling in such times makes no real sense in the longer run. Those who didn`t sell their stocks during the May 2006 crash but had, in fact, bought more would be a very happy lot today.

Investing long term is like that: it rewards you handsomely. Always. Exercise patience. As champion broker Rakesh Jhunjhunwala said recently, if you want to learn more about patience, get married!

The way I see it, you don`t really need to get married to learn patience. Just look back in time. All these stocks have been multi-baggers for those who stayed on for the long term. They would have fetched you unimaginable returns today.

Do your research:
You will learn a thing or two about making crores from a few lakhs. You can still make those crores!
Turn a deaf ear at the sceptics; look at beaten down sectors.

Consider aviation and hospitality. Today, aviation stocks are way below their lifetime highs. But, as India grows, so will travel. And within the next three years, they will reward you handsomely.

Most people ignore aviation and hotels. And that is why they merit my attention.

Pick up stocks that others are ignoring. People who create wealth do things that others do not. I am sure you could make crores if you do too!
...

IF you had bought 100 shares of Wipro at the rate of Rs 100 per share in 1980, they would be worth Rs 200 crore (Rs 2 billion) today.

If you had invested Rs 10,000 in Infosys shares in 1992, you would be richer by Rs 1.5 crore (Rs 15 million) today.

If you had invested Rs 1,000 in Ranbaxy in 1980, you would have got Rs 1.9 crore (Rs 19 million) today!

And not so far back in time, if you had invested Rs 40,000 in Unitech during the lows of 2004, your bank account would see a whopping Rs 1.1 crore (Rs 11 million) today!

Some guy out there knew this. Today, he is laughing all the way to the bank. So what was the magic strategy that made this guy so rich? Simple.

He bought, he waited:

Waited for all those share splits and bonus declarations.

Waited for the company to grow from strength to strength.

Waited even when the shares teetered only to recoup in a few years` time.

Just as a child takes time to realise his/ her full potential, so does an investment need time to reward you handsomely.

Sure, the times are uncertain now. But let that not scare you to sell for a loss.

Patience pays:
Look back. You will notice that selling in such times makes no real sense in the longer run. Those who didn`t sell their stocks during the May 2006 crash but had, in fact, bought more would be a very happy lot today.

Investing long term is like that: it rewards you handsomely. Always. Exercise patience. As champion broker Rakesh Jhunjhunwala said recently, if you want to learn more about patience, get married!

The way I see it, you don`t really need to get married to learn patience. Just look back in time. All these stocks have been multi-baggers for those who stayed on for the long term. They would have fetched you unimaginable returns today.

Do your research:
You will learn a thing or two about making crores from a few lakhs. You can still make those crores!
Turn a deaf ear at the sceptics; look at beaten down sectors.

Consider aviation and hospitality. Today, aviation stocks are way below their lifetime highs. But, as India grows, so will travel. And within the next three years, they will reward you handsomely.

Most people ignore aviation and hotels. And that is why they merit my attention.

Pick up stocks that others are ignoring. People who create wealth do things that others do not. I am sure you could make crores if you do too!


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