Reliance Power - Vested Powerplay

Hi Friends,

Dear friends,

A lot is being said in the media on Reliance Power run down,but the fact is open now,after a calibrated campaign to trip the Reliance IPO using a combination of court cases filed on the behalf of Investor grievances for a "media attacks' and investment banks questioning valuations of the issue, Reliance Industries through its many arms used the stock market to derail the prelisting and the post listing pricing of Reliance Power issue.

Using the garb of a global meltdown, starting January 14, Reliance Indiatries set up a crack team of five key strategists for this market management operation. Run personally by top Reliance Indiastries Excutive Manoj Modi, two treasury functionaries were sent to mauritius to coordinate the bear hammering on Reliance ADAG scrips in the run up to the listing.

A lot is being spoken about the Reliance Power IOP.I am an investor in the same & got 17 & 16 shares for me & my wife.
I was quite surprising for all that the stock went down on day 1.
But if you read the article in ET,Mumbai dated 21st Feb,2008 on page no 18,you will realise that the Cats finally out in the open.
The stock opened with a handsome premium at Rs 530 on NSE and Rs 547.80 on BSE at 9.55 am. But within four minutes, it went down by 26% to Rs 389.80 on NSE. It was clearly the handiwork of a handful of Mauritius-based foreign institutional investors (FIIs) and a domestic bank offloaded their entire or almost entire shareholding in the company within minutes of the opening bell.
Reliance Power has requested the market regulator to investigate the matter in line with the Sebi ( Prohibition of Fraudulent and Unfair Trade Practices) Regulations.
FIIs exited from the counter within minutes by selling their shares at a price lower than their purchase cost.TIf they did not mind to exit at a loss,why the hell did they apply for the issue.
I feel with a fundamentally strong company with a busines leader like Mr.Ambani one should not time the market but remain in the market for a time.Having said this Equity investors should remember that IPO investments and secondary market investments are long-haul processses, and that there are no guarantees of listing or profit in the short term.
Regards,
Ninad Dhuri

the stock fell because of two reasons:
1. It was overvalued...it should have been given on 250-300 range instead of 450.
2. Almost everyone bought this stock for listing gains. all brokers said that everyone should apply to this IPO atleast for listing gains....

So this fall on listing date was anticipated at least by me...i didnt apply for it. i knew it would come down on day 1....and then i can buy for handsome gains..

Dont blame anyone because you did not do your homework correctly...

I see the point. I do agree that this share is overpriced, But who cares. Up till Feb 8th No one predicts that this will go below issue price. and suddenly on feb 11, whole world identify that this is overvalued??
sure there is some trap here, But thats one way good as
1. we all get bonus shares
2. Overvaluation of IPO in future will be reduced
3. Others are morally responsible if their IPO is reduced far below the IPO price.

Some good news to IPO investor isn't it?

Do you know what is RECORD date for Bonus shares?

will be decided via postal ballot.....

source hindustan times