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HindustanTimes Tue,22 May 2012
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Anil's Reliance Power plummets on listing
PTI
Mumbai, February 11, 2008
First Published: 09:37 IST(11/2/2008)
Last Updated: 03:07 IST(12/2/2008)
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Investors on Monday short circuited Anil Ambani group's maiden IPO at the stock markets, with Reliance Power slipping 32 per cent or Rs. 175 a share from the listing price to close at Rs. 372.50 while the billionaire's other group companies also lost up to a fifth of their value. In a day
of market meltdown that saw the benchmark Sensitive Index plummeting 834 points, ADAG group firms lost a total of over $12 billion or Rs. 50,000 crore after Anil rang the customary opening bell at Bombay Stock Exchange to announce listing of Reliance Power through IPO, the first one since he parted ways with elder brother Mukesh in 2005.

The IPO, which generated a whopping demand of Rs. 7,50,000 crore to make it the biggest ever maiden offer in India's capital market history, left investors disappointed. The scrip had commanded a premium of up to Rs. 550 per share in the grey market ahead of listing.

Listing at Rs. 547.8, a premium of 21 per cent over the issue price of Rs. 450, Reliance Power slipped into the red within a minute and thus lost its position from the coveted group of top ten valuable entities on the market.

During the day, his other company Reliance Energy and Reliance Communications were the top two losers among Sensex bluechips, shedding Rs. 380.95 and Rs. 55.70 per share respectively.

At the close of trading, market capitalisation of his group came down to Rs. 3,03,300 crore from Rs. 3,54,758 crore (including Reliance Power at the issue price).

In comparison, value of the market leader Reliance Industries group, led by Mukesh, was down by about Rs. 26,000 crore to Rs. 4,01,200 crore.


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