Wednesday, January 16, 2008

Reliance Power IPO - Subscription Status

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Reliance Power IPO has got a thundreous response from investors. At the close, it got

82 times subscription from Qualified Institutional Buyers (QIBs)
190 times subscription from Non Institutional Investors (NIIs)
15 times subscription from Retail Investors.

Most of the bids are at the cut off price.

Earlier Analysis:
The investors who have waited for the last day to bid for the IPO should bid at the cut off price and make only part payment (1/4th the total amount) because you will get only a portion of the shares because of this oversubscription.

Our recommendation would be to sell the shares if the listing price is above Rs. 800/-. You can enter the stock again as there are good plans for the company but first you should book the profit. There is lot of euphoria about this IPO, so we expect higher than expected listing for this IPO. So, investors should definately book some profit and enter again at lower levels.
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