Reliance Power IPO
It could be interesting if Reliance Power has made up its mind that they will go with Rs 10 issue. Reliance Power IPO is probably a big marky event for the market because I think some people maybe underestimating the kind of rub off in terms of sentiment that issue might have. It is a big issue, it's from Reliance, it has been talked about endlessly and it has fired up the one sector which is leading the market which is power and we do not know whether this is the case we are only discussing a news report.
If indeed it is a case that Reliance said okay I am finding it difficult to push through my Rs 2 face value offer, Sebi is more or less saying no; so let me go ahead with Rs 10 so what if the price is Rs 400 a share. But I will still go ahead with it at Rs 10 face value and if that means that in the next few weeks Reliance Power gets its issue done. I think it is positive from a sentiment point of view and it will probably much that it will suck out a lot of liquidity from the system. I think there will be a lot of sentiment rub off. So it is probably an important development for the market if indeed Reliance Energy has decided to go ahead with this plan.
Q: They will have to keep the pricing very lucrative though even after that?
A: Our estimates were between Rs 50 and Rs 80 multiply that by 5 we have seen many issues getting terribly oversubscribed in the Rs 400-500 zone. It would have been fantastic if they could have come at Rs 60. Imagine Reliance Power at Rs 60, nothing changes materially but the sentimental appeal would be much higher. But if they cannot do it they cannot do it, they should come in at a quick larger ticket price and get it done quickly.
Source moneycontrol
If indeed it is a case that Reliance said okay I am finding it difficult to push through my Rs 2 face value offer, Sebi is more or less saying no; so let me go ahead with Rs 10 so what if the price is Rs 400 a share. But I will still go ahead with it at Rs 10 face value and if that means that in the next few weeks Reliance Power gets its issue done. I think it is positive from a sentiment point of view and it will probably much that it will suck out a lot of liquidity from the system. I think there will be a lot of sentiment rub off. So it is probably an important development for the market if indeed Reliance Energy has decided to go ahead with this plan.
Q: They will have to keep the pricing very lucrative though even after that?
A: Our estimates were between Rs 50 and Rs 80 multiply that by 5 we have seen many issues getting terribly oversubscribed in the Rs 400-500 zone. It would have been fantastic if they could have come at Rs 60. Imagine Reliance Power at Rs 60, nothing changes materially but the sentimental appeal would be much higher. But if they cannot do it they cannot do it, they should come in at a quick larger ticket price and get it done quickly.
Source moneycontrol
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