Investing in the Reliance Power IPO?

A D A enterprises is out with the Rel Power IPO. So are u investing in it? Most pundits predict a minimum of 4 times retail and 10 to 15 times total over subscription…most likely, due to the Dhirubhai tag and due to their control influence over the market, this cannot be ruled out.

The fear factor is delays and execution

Some north mumbai folks who have reliance power energy or the old BSES curse it, due to the poor quality of power and service and fluctuations. In fact after the big flood there were complaints against the firm. ….totally unrelated but relevant info

This Ambani has the contacts with the wrong bunch of politicians AKA Amar Singh n gang, so if all things be equal govt permissions can get delayed.

There are two strategies for the small investor here :-

On the second last day, if the over subscription is as estimated, it would be advisable for retail investors to apply for 225 shares, which has a bid value of Rs.96,750 (and an upfront payment of 25875), because they will get part subs and blocking money will be avoided with the Part Pmt route.

Else one must rethink on whether to to do part subscription and then wait for the call process wherein he bears risk of volatility in that share or go for the full subscription and sell for listing gains

Update: Tue 15 11.50 am: the IPO has been subscribed 5.36 times

Update: Tue 15 4pm : well on its way for a 10X over subscription saw the rush at dalal street people are reliance power mad !

Last update: retail subs is 6+ times as of today  – expect it to goto 9 times total, go for part pmt and apply by morning say 11 am  if u want ur entry to be uploaded


8 thoughts on “Investing in the Reliance Power IPO?

  1. why does one has to pay a 42,000% premium for a company that is atleast 15 months away from commissioning its first plant?

    true , plus he is the wrong ambani to bet ur moneys on
    whatever do keep me updated whenever u do invest into that script

  2. We should see some enthusiasm during IPO, since it comes from such a big group with that big reputation and all those stuff. After the IPO, you will see the price staying more stable, till there is some news about something happening to that project, or else you should wait and see the perfomance. So, I should say, we will first see an over subscription and a long silence and then it will come back

  3. I don’t know much about the Indian Stock market, but my mom is applying for a full subscription. Don’t ask me for the basis of her logic or anything. I don’t know anything! She says that it will give a handsome return.

  4. hey thanks ruhi ankur and dinsan for super quick response

    most likely ur mums right as i stated it in my opening lines

    this is a big ticket ipo rated as super large
    so putting up the caveats is necessary

  5. because of the informal premium and stuff, i think there should be no harm in applying for 1L or so… if you get any… then its lottery.

    but a share which has gained so much of hype is rarely a portfolio stock.. so don’t hold it for more than a week after listing.

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