reliance IPO

moneyshah · #1 15th January 2008, 10:46 AM

hi all,
what does this mean " reliance power fully subscribed in the first few minutes of opening". does that mean that we cannot apply for it anymore?

please give your views!
regards
moneyshah

sandy_m · #2 15th January 2008, 11:28 AM

you can apply.

generally IPOs get subscribed multiple number of times than it's total size.
at the time of allotment, some rules are applied and people get less number of shares than their actual applied number. this is done so as to ensure most number of people get shares from IPO.
e.g. for RPL, if you apply for full lot which is 210 shares in retail category. chances are that you will get upto 5-10% or 10-20 shares.
Rules for allotment are not fixed. But in most cases, applying for the full amount (1lakh for retail) has more chances of getting shares.

212DegreeCent · #3 15th January 2008, 11:31 AM

That means its will oversubscribe muliple times. Definitely you can apply for it now also. Only think is share allotment to u will be in proportion to you. Very simple example.... if u r applying for 100 share and issue oversubscribes 4 times, then you may get 100/4 share that is 25 shares alloed to you. IF it will get super subscribes like 100 times then in that case it will be lottary system....

wish you all the best moneyshah....

moneyshah · #4 15th January 2008, 12:15 PM

thanks sandym and 212 DegreeCent!

tintin05 · #5 15th January 2008, 12:37 PM

Hi,
In case of Reliance Power IPO, there is an option of making Part Payment and Full Payment.
Is there any advantage of making Full Payment instead of making Part Payment?

Regards,
Tintin

Aniruddha Mukherji · #6 15th January 2008, 12:51 PM

You can apply till the last day ie, Fri Jan 18th upto 5-00 P.M.
Aniruddha.

nonstopkaran · #7 15th January 2008, 01:18 PM

i hava query

if i am buying in part payment, is it possible for me to sell the stock on the listing day.

many saying that it will take atleast 3 weeks to settle out all the refund and one can sell his alloted shares only after that. is it so.

prak_ks · #8 15th January 2008, 02:09 PM

Hi Nonstopkaran,
Yes if you make part payment then with in 12 days from the date of listing u need to pay the balance amount. Also u will have your share put in your demat after 24 days. So you CANNOT sell roughly around a month time after listing.

Hi TinTin05,
Yes there are advantages, if you pay full you get 20/- discount on each share u buy.Also as explained above you need not wait for 24+ days for selling your share once listed.

Regards
prakash

sandy_m · #9 15th January 2008, 06:59 PM

part payment - it means you can bid for more amount, say 1 lakh in retail category. But you need not pay 1 lakh at the time of application. you can pay partially, which comes to around 25 thousand rs.
full payment - you pay full. that is, in above case, you pay 1 lakh at the time of application.

now what happens -
case 1 - suppose IPO retail category gets subscribed at full but not over-subscribed. that means you will get shares worth rs 1 lakh in above case. but since you have made only part payment of 25k, you will not get shares on day 1 of listing. you need to pay balance amount, 75k in this case, and then only shares will be given to you. this whole thing means, you will have to wait for some days after IPO listing to get shares depostited into your account. so in this case, you can not sell shares on listing day in the secondary market and can not book listing gains.
opposite to this, if you have made full payment of 1 lakh then you will get shares worth 1 lakh on listing day and you can make listing gains by selling shares immediately in the secondary market.
case 2 - suppose IPO retail category gets oversubscribed multiple times more than 4. In this case, even though you have applied for 1 lakh, you will get shares worth rs 25 thousand or less. Suppose you get shares worth 20K. Now since you have already made part payment of 25k, you will get shares in your account on the listing day itself. You can make listing gains by selling shares immediately in the secondary market. You can expect refund of 5k in few days.
Even if you have applied for full payment 1 lakh, in this case, you will get shares worth 20k in your account on listing day and can expect refund of 80k in few days.

Looking at this IPO, it is very likely that retail category will get over-subscribed more than 4 times. Hence making part payment is advisable.

rpkunn · #10 15th January 2008, 08:43 PM

Excellent!!