Anxious wait for Reliance Power listing

As found at : www.thehindubusinessline.com

Mumbai, Feb. 8 Investor anxiety is mounting as the Monday listing of Reliance Power nears.

The company’s mega IPO concluded last month, raising Rs 11,500 crore.

Analysts and investors are wondering whether Reliance Power will list below the issue price in the current bear market, or above the issue price despite the bear market.

The issue price was Rs 450 a share; retail investors received allotment at Rs 430 a share.

The concern extends to whether the Reliance Power price will sustain, even if the company lists at a premium to the issue price.

“Past investor behaviour suggests that a premium will lead to immediate selling and booking of profits,” said an official with a broking firm.

“It may also come under selling pressure as those who have taken loans from banks will try to book profits to pay them off.”

The recent withdrawal of two IPOs does not set a very good tone for markets next week either, he said.

Source : www.thehindubusinessline.com