Reliance Power IPO under pressure

Anil Ambani's mega Reliance Power IPO is geared to be listed on Monday and the Emaar MGF IPO withdrawal might cast its shadow on the listing. Though the grey market premium has failed sharply over the past few weeks because of the volatility, analysts still expect it to list at least Rs 150 above the offer price. All eyes are now on Monday when Reliance Power is expected to list around Rs 600 per share as against the IPO offer price of Rs 450 per share. The Grey market premium, which has fallen sharply in the last two weeks, is still ruling between Rs 120 - 140 per share. But if Reliance Power lists below Rs 550, HNIs may have little option to sell as it will barely cover their cost per share, given the high interest charges. Reliance Power's IPO may have been oversubscribed a record 73 times but the one uncanny similarity with Emaar MGF is that both companies are yet to show any real profits.