The Anil Ambani-owned Reliance Power created history on Friday when the company’s initial public offering (IPO) attracted cumulative bids worth, hold your breath, Rs 7,52,000 crore (around $180 billion).
This is the highest-ever demand generated by any IPO so far in the country. The amount is equivalent to the aggregate market capitalisation of companies listed in Portugal and the Czech Republic markets taken together, according to Bloomberg.
According to bidding statistics available with the National Stock Exchange till 7 pm, investors bid for over 1,658 crore shares on on NSE and BSE, resulting in an oversubscription of 72.7 times.
The QIB (qualified institutional buyers) portion was oversubscribed 70-80 times, while high net worth investors (HNIs) bid for shares over 200 times the size reserved for them. The retail portion was subscribed 14-15 times, according to sources.
Several banks subscribed to the offer. Public sector banks like Punjab National Bank, State Bank of India, Bank of India and Indian Overseas Bank put in bids worth Rs 1,500-2,000 crore, said the sources.
Nearly 50 lakh applications were received in response to the mega offer. The strong flow of applications continued unabated despite extremely bearish market on Friday. The index, in fact, has crashed nearly 2,000 points in the past four days on account of factors like weak global cues and diversion of liquidity to major IPOs like Reliance Power and Future Capital.
R-Power had offered a total of 22.8 crore shares to the public through 100% book-building. The Rs 11,700-crore offer was fully subscribed in just a few minutes after it opened for subscription on Tuesday. The shares were offered in a price band of Rs 405-Rs 450. Retail investors were, however, offered a discount of Rs 20 per share.
R-Power is developing and building power projects locally and overseas. The company on its own and through subsidiaries is currently developing 13 medium- and large-sized power projects with a combined planned installed capacity of 28,200 mw.
2 comments:
HI i m piyush jain & i had put my self in big trouble i had bought a RIL Feb Future (two lot) few day ago in 3120 now market has fallen so plz can u suggest me what to do & what would be the target of ril in feb & also i had power grid feb future (one lot) around 145 so let me know about this if possible
Thank you
hi piyush. You are not the only one who has lost money over the past week. Market has beaten even experienced brokers. The main cause for the fall is the recession fear in the us economy. Though people are now blaming the lack of liquidity caused by Reliance Power ipo for the fall. But this is not the case. Such an unprecedented and sustained fall is a result of FII's and foreign institutional investors pulling their money out of the indian market for they fear that the recession in eminent. In such a scenario its difficult for me to give you short term target. Most of us are as clueless about the market as you are, though some broking houses may pretend otherwise.My advice will be to hold on and watch the market mood on Monday. If market doesn't open positive on Monday then we are in for another week of declines. If the markets stabilise over the next two days.. then powergrid can come back to 145-148 levels in a week also the results of RIL has been pretty good. So if the overall market situation improves RIl should breech 3250 by the 2nd week of feb. But if the market doesn't show a positive streak soon. Then all these calculations can go awry. Powergrid may stabilise around 128-129.. But RIL can see some real fall and may touch 2800. Lets hope for the best .
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