Who wrote this article?

Deepak Shenoy, Capitalmind's research team.

Reliance Power In The Doldrums

11 Feb 2008Deepak Shenoy1 min read

Quick Facts

What is "Reliance Power In The Doldrums" about?
What category is this article in?: Stocks
Who wrote this article?: Deepak Shenoy, Capitalmind's research team.
When was this article published?: Published 11 February 2008.
How long does this article take to read?: 1 min read
What topics does this article cover?: IPO, ReliancePower

The Reliance Power stock has had a shocking listing (excuse the pun). With an issue price of Rs. 450, the stock started off at Rs. 530 and then went into a steep fall. As I write, it’s standing at Rs. 420, and it had briefly gone below the 400 levels too.

Obviously this is doom for the greedy IPO followers, and specially for the loser loan takers. It’s harsh on them that the price is below the offer price, and worse if they have to pay interest on a loan! Plus, it’s likely that they got some obscenely low number of shares. (if you were lucky you would get 17 shares, Rs. 9K worth - for an investment of 1 lakh, the rest of the money being refunded. You still have to pay interest if you borrowed the money, until you get the refund.)

RPower seems to have taken the Nifty with it. At 4900, the Nifty looks like it’s ready for another steep fall. I should get out of whatever little investments I have

Disclosure: Long some stocks and mutual funds. No short positions. (Unfortunately)