RePL: Grey market premium slips from 400 to 280

Hi,

Heres the article from ET which says that grey market premium for RePL has gone down from 400 day before opening of IPO to 280 as of today. In addition to that Retail portion till end of 2nd day is subscribed only 2.6 times. Even if ane of the FII or HNI withdraws thier application, allotment would be much more than expected and hence listing gains cannot be made for those applying with part payment option.

Although, for long term investor, there is no need to very, Please be alert if applying in more quantities with part payment option for listing gains.

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MUMBAI: Shrinking grey market premium in the Reliance Power issue, as a result of the bearish mood in the market in the past two sessions, is prompting investors in the non-institutional category to reduce their exposure to the issue. According to market sources, the grey market premium has now slipped to Rs 280, compared to Rs 320 on Tuesday and is way below the price of Rs 400 it had been commanding last week.

Many HNIs are said to have informed non-banking finance companies that they will not be requiring the entire lot of funds that they had initially committed to borrow. If the premium in the grey market narrows down, it would mean lower gains on the day of listing.

For those looking to booking profit immediately on listing this could be a loss making proposition because the listing price has to be significantly higher to cover the cost of borrowed funds. But this could be a boon to some other investors, who are taking a slightly longer-term view on the stock.

If one section of investors pull out, others are likely to get higher allotments. Should the market bounce back around the time of listing, these investors stand to earn higher profits. A day before the Reliance Power issue opened, the premium was hovering at Rs 380, more than 80% over the upper price band. Sensing this interest among retail and high net worth investors, banks and finance houses (many of which are arms of brokerages) have lined up for funding subscription.

Happy Investing

Hi! The retail portion at the end of the second day is subscribed 4.4 times. This information is available at the NSE website. Check it out:
http://www.nseindia.com/content/ipo/...ent_rpower.htm

By the way, by what time will the Reliance guys debit the bank account of the applicants? Can anyone please tell??

Thanks for correcting me. If ur applying online..immideately...if ur applying on 18th...most probable on 23rd

I applied via the forms on the 15th but the money hasn't been deducted yet. Keeping my fingers crossed!

deal cool

keep your kool. irrespective of dates, our banker brothers will look into reliance ipo clearing cheques only on 18th and it will reach your bankers between 19th to 21st as per your bank holiday charts etc. do not worry.you will get your cake.

always trust and confidence reep good harvest.