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