The Hindu Business Line : RPower listing fails to cheer up investors

One retail investor said that he had expected an opening price of Rs 600: “I did not expect it to go below the issue price of Rs 450 since it was an Ambani company.”

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Mumbai, Feb. 11 A sombre mood prevailed at the listing ceremony of the Anil Dhirubhai Ambani Group (ADAG) company Reliance Power at the Bombay Stock Exchange on Monday.

The high excitement that characterises any Reliance group listing (whether of the Mukesh or the Anil group) was distinctly absent, even for what was the largest IPO in the history of the Indian capital markets.

ADAG Chairman, Mr Anil Ambani, who rang the opening bell to kick off trading in Reliance Power, left the venue immediately after the first trading quotes appeared on the widescreen at the BSE convention hall.

The merchant bankers for the issue too departed just after the formalities, speaking little to mediapersons who were present in full strength.

Reliance Power’s IPO had been heavily subscribed and had garnered a record number of applications amidst a frenzy in the market in expectation of handsome returns on their investments in a Reliance company.

With this came the general optimism that the share would list at a heavy premium to the issue price.

Price expectations

One retail investor said that he had expected an opening price of Rs 600: “I did not expect it to go below the issue price of Rs 450 since it was an Ambani company.”

“We hadn’t expected it to go down below the issue price of Rs 450,” a BSE Member said.

“A lot of people panicked as the scrip traded below the issue price after the first few minutes of listing,” Mr Satish Ramanathan, Head of Equities, Sundaram BNP Paribas Mutual fund, said.

“People in the market were punting rather than investing when it came to the Reliance Power IPO. People were in a bullish mood and were certain that the scrip would list at a premium and to make a quick buck the investors had become punters during this IPO,” Mr P.R. Dilip, Managing Director of Impetus Wealth Management Ltd, said.

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