The big daddy of IPOs was around the corner. And voila! It took India by storm. Everyone I know has been talking about the IPO and there is hardly anyone who has not invested in this. As per market reports, the offer has been oversubscribed 73 times. This is the first for an IPO in India. The herd mentality being followed by investors is purely based on the fact that the Reliance Power shares might give them manifold listing gains.
As much as I would like to believe in this hypothesis, there is a good chance that the hype that has built up is going to dilute its listing. I would rather take a cue from similar stocks listed on the market. I believe that Reliance Power might take a significant time to return value to the shareholders. Remember Reliance Petroleum, which is yet to start production? I want to write more but I do not want to be too negative here. Personally, I would love to enter this stock, but only when the valuations seems right. For now, I would rather watch from the sidelines. And of course, the multibaggers in market are aplenty.
Veni, Vidi, Vici!!
I think you have some vague ideas about investment.
Not only the scepticism of people like you but also the malicious campaings of vested interests have been hurting the interests of small investors like us.
There is more to the general consensus that global meltdown was responsible for Reliance Power IPO’s lacklustre listing. The hard-earned money of investors was reduced to dust and rubble even as some vested interests sabotaged the listing of an eagerly awaited IPO that bore the expectations of lakhs of investors.
The questions that the investigating agencies should ask are: whether senior executives of the rival camp travelled abroad prior to the listing period and whether they formed any nexus with tainted brokers and bears of the markets?
Why were all Reliance ADAG scrips drastically hit and hammered even though they belonged to unrelated sectoral groups? Was the key financial media influenced to ‘talk down the market’ every morning before market hours so as to ensure a depressed market sentiment right from the very beginning of every trading day during the period?
There are several unanswered questions and the investors want answers…
Your doubts do not make sense at all. Reliance Petroleum has always fooled investors, you already know it but the Reliance Power IPO was deliberately beaten. There is a lot of speculation about this and there are so many small investors hit because some big entity (mostly elder brother Mukesh Ambani) was involved to make this listing unsuccessful because of the scare that Anil Ambani might become richer… How stupid and that too at the cost of small investors like us.
It is shameful that such people are still loose without any allegations and SEBI is still asleep. I’m glad someone (i must say with a lot of details) has openly written about this and other frauds done by Reliance Industries all the way http://rilfraud.blogspot.com. The names of people have been openly mentioned. Wake up BSE watchman.
I think the reason is stright - somone does not what ADAG group to progress and grow- you know WHO.
Last year ADAG group gave highest returns to its investors which seems to not go well with few ppl and with the Power IPOs huge response these ppl made sure that the sript went down on listing.
My faith is in ADAG and they will not let the common investor down.
Dear Piyush Shah,
You are right about the ADAG Group.If u look at their General Insurance Business the profitability is much better than Big Time Player ie. Pru ICICI. Pru ICICI has good turnover and has 5 Billion as AMC under their kitty, but margin is flat and customer focus is less.
Please look at Holding Company’s growth in earnings per share over the period of time.