RePL IPO: Retail portion subscribed only 1.4 times

ravalsb · #1 15th January 2008, 11:54 PM

Following article from ET indicates retail portion is subscribed only 1.4 times.

Thus, If one has applied for 225 shares with part payment and retail portion is not subsribed over 4 times, people investing with the aim of listing gains land up in trouble, since shares can then be sold only after making payment within 12day of listing and shares therefore cannot be sold in the week of listing.

Please correct me if I am wrong.

Happy Investing

MUMBAI: Anil Ambani Group firm Reliance Power Ltd's initial public offer appears set to break all records in the primary market as it drew a massive response from retail and institutional investors alike who bid to buy shares worth over Rs 100,000 crore on the first day itself.

The first IPO from the Group today received bids for 242 crore shares, or 10.6 times of the 22.80 crore shares on offer for the public. The issue was over-subscribed within a minute of opening - a record. More than four lakh applications poured in during the day and the average demand from one investor is estimated to be over Rs 100 crore worth of shares.

So much was the demand for the issue that investors encashed a part of their holdings in the secondary market to buy its shares, pulling the benchmark BSE Sensex down by almost 477 points. Even power stocks, including parent firm Reliance Energy Ltd, ended in losses on the bourses.

The Qualified Institutional Buyer (QIB) segment of the IPO was oversubscribed 17 times, while the high net worth individual (HNI) segment was oversubscribed 7.4 times. The portion reserved for retail investors received bids for close to 1.4 times the shares on offer, market sources said.

Overall, the IPO was oversubscribed 10.64 times, with demand worth about Rs 1,09,000 crore, according to data available with stock exchanges. The company looked set to make history with record proceeds of Rs 11,700 crore as almost all bids came at Rs 450, the top end of the price band.

amityt · #2 16th January 2008, 11:33 AM

Reliance Power IPO Retail portion will surely get oversubscribed by around 9 times with number of applicants crossing 36 lacs.Many intelligent analysts would doubt the premium asked,listing prospects and so on--- but the fact remains that it is better to go with the public leaving aside the fundamentals.

URPradhan · #3 16th January 2008, 11:47 AM

again, your shares will be credited your demat a/c after 21 days of listing. so ppl who were thinking to earn something on the first day now have to wait for 21 days (correct me, if wrong).

SpeedBall · #4 16th January 2008, 01:59 PM

People usually apply on the last day of application period.
Simply because that way your money isn't blocked for additional 3 days...

People are already pulling out money from the markets for IPO and good that market is undergoing the required correction. 5% correction is done if market closes 500 below today...
5% more is required...

212DegreeCent · #5 16th January 2008, 03:59 PM

Guys, looking at the previous IPO subscription and their subscription. Reliance Power is getting subscribe at very high rate. I feel it will get subscribed more than 100 times. Wait for last day. Initially I made mind to invest huge amount in this issue, but that again based on Subscription. Now it looks I will not subscribe for it, no point in invest huge and get very less allotment. Comapany need another 3-5 years to deliver output. Its just hipe in the market. Within 15 to 20 days stock price will be close to 450 or less than that. Be careful guys and consider all the factors before investing.... no regret later. Don't go behind words... do your own study and take your own decision...

VasanSuccess · #6 18th January 2008, 10:11 AM

yup, as of today morning, it is subscribed 6 times. I guess while close, It will be subscribed atleast 10 times. still little profit is seen here.

VasanSuccess · #7 18th January 2008, 10:13 AM

Quote:

Originally Posted by 212DegreeCent

Guys, looking at the previous IPO subscription and their subscription. Reliance Power is getting subscribe at very high rate. I feel it will get subscribed more than 100 times. Wait for last day. Initially I made mind to invest huge amount in this issue, but that again based on Subscription. Now it looks I will not subscribe for it, no point in invest huge and get very less allotment. Comapany need another 3-5 years to deliver output. Its just hipe in the market. Within 15 to 20 days stock price will be close to 450 or less than that. Be careful guys and consider all the factors before investing.... no regret later. Don't go behind words... do your own study and take your own decision...

I agree with you partially. It will be over subscribed and will take long time to deliver output. But it wont reach 450 price in 15 days, But may be, it will reach in 3-6 months.

so apply now, get those little listin gains, and re-enter later

at lower price, no harm for retail investor in partial payment category

apprentice · #8 18th January 2008, 08:00 PM

Anybody know approx how many times Retail portion has been subscribed till now ?? , i have applied for 225 @450/- payment option 2 ( full payment ) as i am looking for listing gains mainly , if i get any alloted ofcourse

NILKANTH KORANNE · #9 18th January 2008, 08:28 PM

Appears to be going more than 15 times in Retail [ lucky applicants may get 15 shares ]

apprentice · #10 18th January 2008, 08:41 PM

Quote:

Originally Posted by NILKANTH KORANNE

Appears to be going more than 15 times in Retail [ lucky applicants may get 15 shares ]

thanks for the info mate