Rel Power IPO subscribed 72.5 times

India's largest equity offer by Reliance Power mustered an equally large response with a subscription of 72.57 times over, as investors jostled to beat the Jan 18 deadline despite another major crash on the bourses. Against the 228 million shares on offer, the Anil Dhirubhai Ambani-led company received bids for a whopping 16,548,002,625 shares by 5 pm on the closing say, in what analysts said was a record in the history of Indian stock markets. A crash of 687.12 points, or 3.49 per cent, in a major stock index did not dampen sentiments for the issue, and analysts said people might have liquidated a part of their holdings in other stocks to subscribe to Reliance Power shares. This kind of response has not been seen in recent times. What is noteworthy is that the issue invited such unprecedented response despite a major crash in the Indian stock markets. The company had set the issue price in a band of Rs 405-450 with a Rs.20 rebate for retail investors for whom 30 percent of the 228 million shares on offer was set aside.

Source: Asian CERC Type: IPO Related