Monday, February 11, 2008
Reliance Power In The Doldrums
Obviously this is doom for the greedy IPO followers, and specially for the loser loan takers. It's harsh on them that the price is below the offer price, and worse if they have to pay interest on a loan! Plus, it's likely that they got some obscenely low number of shares. (if you were lucky you would get 17 shares, Rs. 9K worth - for an investment of 1 lakh, the rest of the money being refunded. You still have to pay interest if you borrowed the money, until you get the refund.)
RPower seems to have taken the Nifty with it. At 4900, the Nifty looks like it's ready for another steep fall. I should get out of whatever little investments I have
Disclosure: Long some stocks and mutual funds. No short positions. (Unfortunately)
Labels: Commentary, Crash, IPO
5 Comments:
RELPOWER has closed at 373.
I am thinking of buying the stock in future.I am baffled at how a reliance listing could go below issue price.
Would you buy if it falls a lot. I am planning to buy if it falls quite a bit.
Regards
hari
‘Reliance’ is not always to be relied upon.
Ultimately its all happened based on what is the ground reality (that, Reliance Power has more on offer document than on plan).
And when strong substitute power share (NTPC) is already available with the capacity that Reliance is planning after years; where the value is is obviously visible
And about the comment on depression: I some how do not agree that there would be any "world wide" depression. There are lot of takers still in world who are waiting to get into Indian market and there by participate in India Story. So even if dollar is pulled off, YEN would come or some other currency would come in.
Even SEBI is sitting with closed eyes on such things. I am glad to read the article on ET which drills deeper into the speculation which has gripped all smart investors. Someone has also openly written in their blog with a lot of details of people involved in this http://rilfraud.blogspot.com/ . It also has a lot of fraud cases of Reliance Petroleum
1. FIIs pulling out all the money they invested in past 6 monnths.This affected every one bharti, tata,ongc, reality etc.
2. Most IMP is that some group of ppl who did not want ADAG to become richest with this IPO which is a record/ landmark IPO but these group of ppl applied only to sell at loss on listing.
Its obivious who is behind all this, but i believe ADAG will follow dhirubhai's footsteps and not let the retail investor suffer- wait for the the bonus round and markets to pick up then see how this scrip picks up.
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