Hey readers, how many of you are left crest-fallen with the listing of the Reliance Power?? I am sure many of you are left holding your heads in your hands; with Reliance Power listing @ 430 (vs. an issue price of 450 and a listing price fixed @ 610), experts, investors and first-timers alike are left wondering as to what to do!
I have read a lot on this issue and in none of my readings did any expert expect the issue to list below 525!! Yes, the minimum premium for the shares was Rs. 75 and that was supposed to be a PESSIMISTIC ESTIMATE!! The energy shares have not taken to the listing all that kindly; last checked, both Reliance Energy and Tata Power were trading 5% lower.
However, after listing @ 430, Reliance Power seems to have made some sort of a recovery, with the shares now trading @ 450. One can only hope, pray and keep fingers crossed that the stock closes above Rs. 500 today. A close above 500 would not only make Ambani Jr the richest Indian on earth, it would also signal that maybe, just maybe, there is some light @ the end of the tunnel!!
After the events of the last fortnight, I hope none of you are left wondering over why this site is called the "The Sensexxxational Ride"!! ;-) Abhi picture baaki hai mere doston, hang on!! :-D
Showing posts with label Reliance Power. Show all posts
Showing posts with label Reliance Power. Show all posts
Monday, February 11, 2008
Reliance Power to list today!
Finally the day is upon us when we will know how strong the Ambani name is in the market. Reliance Power, India's biggest IPO to date, received a tremendous response, being oversubscribed by as much as 73x. However, times have changed for the markets since the IPO opened to the public on January 15, 2008. At the time of the IPO opening, experts had expected shares of Reliance Power to list at Rs. 900/- .. Compare it to the current expectations of the IPO listing at Rs. 550 - Rs. 600 and you know something really bad went on during this interim period.
So what caused a sharp decrease in the premium for Reliance Power? I believe the slowdown in the U.S. market led to heightened fears of recession, which in turn caused a severe correction in the Indian markets. This has affected the investors' appetite for IPOs; this is very much evident from the withdrawals of the IPOs for Emaar MGF and Wockhardt Hospitals last week. Both the comapnies saw a poor response to their IPOs and have now decided to raise money from the primary market at a later date when market conditions are more favorable.
The markets too have been trading in the negative for most of last week and everyone's eyes are now on the listing of the IPO for Reliance Power. A blockbuster listing for Reliance Power should see some short-term bullsih momentum enter the market. The Indian markets severely need some positive indicators to stem the outflow of FIIs and generate some liquidity in the primary market. I'm keeping my fingers crossed for no matter how flawed Reliance Power may be as a company, the name RELIANCE can make or break the Indian market! There is just no denying the fact that divided, the Ambani brothers stand taller!!
So what caused a sharp decrease in the premium for Reliance Power? I believe the slowdown in the U.S. market led to heightened fears of recession, which in turn caused a severe correction in the Indian markets. This has affected the investors' appetite for IPOs; this is very much evident from the withdrawals of the IPOs for Emaar MGF and Wockhardt Hospitals last week. Both the comapnies saw a poor response to their IPOs and have now decided to raise money from the primary market at a later date when market conditions are more favorable.
The markets too have been trading in the negative for most of last week and everyone's eyes are now on the listing of the IPO for Reliance Power. A blockbuster listing for Reliance Power should see some short-term bullsih momentum enter the market. The Indian markets severely need some positive indicators to stem the outflow of FIIs and generate some liquidity in the primary market. I'm keeping my fingers crossed for no matter how flawed Reliance Power may be as a company, the name RELIANCE can make or break the Indian market! There is just no denying the fact that divided, the Ambani brothers stand taller!!
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