Big speculators have hammered R power by spreading fear of merger with Relifra, just to buy this wonderful share in bulk at such a low level.Fortunately for these big players, hangover of RNRL- RIL case has helped them to play this game. This is a fundamentally very strong share. At the time of its IPO whole India was crazy for this share & every analyst with no exception, made strong buy recommendations for its IPO, just because of it being a company with strong fundamentals & great future earning potentials. Unfortunately for R power, after its IPO instead of sensex rising to 25000 as everybody was talking, sensex crashed badly and so crashed r power.
As for as question of merger is concerned it is totally baseless to assume that ADAG will do the same as Mukesh Ambani has done with its RPL investors. Anil Ambani has a totally different ideology & values from that of Mukesh ambani.After listing When R power crashed although it was just because of Market fall & public blamed ADAG of charging overprice in IPO,however Anil Ambani set an example by giving bonus shares to its investors out of his own equity. This shows that Anil Ambani has a great concern for his group`s goodwill & wellfare of his investors. How can we expect from such person to do an act (like RPL merger) which will cause its investors loss. These are just rumors which are spread by big players who have vested interests.
Current low price of R power is not justified even if ADAG is not entitled for any gas although chances are very low. So, long & short term investors should just dive into this stock.