Reliance Power hammered on listing day

Feb 11, 2008 Stock Market

The highly touted public listing of Reliance Power turned into a total disaster, as the stock, which opened at a slight premium at around Rs.530, was then hammered down within minutes to the Rs.350 levels, before closing the day at Rs. 372.30, compared to the issue price of Rs.430 for retail investors.

Predictably, there was a bloodbath in the markets as investors sold across the board, many of them doing so because they had no option, having over-leveraged themselves heavily expecting a bumper listing.

While watching TV in the evening I was quite amused to see interviews with such investors who said things to the effect that Anil Ambani had “betrayed” their trust blah blah. While I am by no means a fan of either Ambani, I do object to these kind of views. Any person who puts money in the markets should be aware of the fact that just as they can get super-normal returns, the reverse is also true, especially with all the volatility prevailing at this point in time.

What also pissed me off were comments by the so called “experts”, who suddenly began dispensing pearls of wisdom about how this issue was overpriced and fundamentally not as strong as NTPC or Tata Power. During the run-up to the IPO and the issue period, these were the very people who were extolling the virtues of a company that didn’t even actually exist.

Btw, I ended up buying some more at Rs.350-370 levels !! Let’s see how this move pans out.. Only time will tell !

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Comments (11)

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Rocky

Ultimately, Ambani is the guy who will walk away with all the cash, investors be damned. One thing Dhirubhai did is teach both brothers how to screw the public with a smile on their faces !! And the eager public is stupid enough to lap up EACH AND EVERY OF THEIR STUPID SCHEMES AND IPOS !!!!
Rocky

Ultimately, Ambani is the guy who will walk away with all the cash, investors be damned. One thing Dhirubhai did is teach both brothers how to screw the public with a smile on their faces !! And the eager public is stupid enough to lap up EACH AND EVERY OF THEIR STUPID SCHEMES AND IPOS !!!!
Jiten Shah

what nonsense this person is saying? rocky boss, if u cant able to undestand mkts then better u stay out and dont give gaalis to the ambani bros. in long term, many ppls have made money bcoz of them.
Jiten Shah

what nonsense this person is saying? rocky boss, if u cant able to undestand mkts then better u stay out and dont give gaalis to the ambani bros. in long term, many ppls have made money bcoz of them.
Prajakta

I think this is just a knee jerk reaction from these people. It probably stems from a crushing sense of disappointment everyone must be feeling, more so those who borrowed to invest. So it was a lesson learnt the hard way.

Prajakta
Prajakta

I think this is just a knee jerk reaction from these people. It probably stems from a crushing sense of disappointment everyone must be feeling, more so those who borrowed to invest. So it was a lesson learnt the hard way.

Prajakta
Aniket

It was all the handiwork of Mukeshbhai and his buddies to pull down Anil Ambani’s IPO listing plans.
Aniket

It was all the handiwork of Mukeshbhai and his buddies to pull down Anil Ambani’s IPO listing plans.
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