HT Image
HT Image

Anil to be cynosure of all eyes tomorrow

Billionaire businessman Anil Ambani will ring the opening bell in Mumbai to mark the listing of his group company Reliance Power at BSE & NSE.
By HT Correspondent | PTI, Mumbai
UPDATED ON FEB 10, 2008 08:19 PM IST

Billionaire businessman Anil Ambani will be the centre of attention on Monday morning, not just for India but perhaps for the stock markets worldwide, when he rings the opening bell in Mumbai to mark the listing of his group company Reliance Power at BSE and NSE.

The company created many records with its initial public offer just last month. With the market conditions having changed dramatically since then, its listing is being keenly awaited -- not only as a test of the investors' confidence in Ambani but also to help decide the future course of action in a highly volatile market.

This is the first IPO by the Anil Ambani group after the family settlement between him and elder brother Mukesh Ambani in June 2005. His another firm Reliance Communication which got listed at Rs 290 is currently quoted at Rs 646.10 on BSE.

As far as the IPO is considered, Anil Ambani is the last man standing in the stock market arena, with Reliance Power being the last successful major public issue across the world.

Having raised about three billion dollars though its public issue, the company has helped India become the biggest IPO market so far in 2008, with a total tally of 3.3 billion dollars.

This accounts for nearly half of the total global IPO proceeds since the beginning of 2008, which has seen close to 25 IPOs being shelved globally, including two in India last week. Since January this year, about a dozen of IPOs have been shelved in America.

Besides, turbulent market conditions have already seen India Inc lose over 100 billion dollars in terms of market value in 2008 and the bulls are now betting on a premium listing of Reliance Power to restore investors' sentiments.

However making the things worse, grey market premium has slipped to Rs 50-60 per share for the company as against Rs 450-550 till a few weeks ago when the IPO process was on.

Most of the market observers are foreseeing a listing at around Rs 500-600 per share and expect the stock to either extend the premium or slip into a discount as the day progresses, depending on the overall market mood.

"R-Power would decide whether a next trigger for markets can do something for the market while pressure of global markets might try to pull down sentiments," brokerage firm SMC Global's Vice-President Rajesh Jain said.

However, with close to 90 per cent being with promoters, those in the bullish believe that any major selling pressure was unlikely to be seen in the stock.

Besides promoters, FIIs are the second largest shareholder of close to 4.5 per cent, but they are also unlikely to start selling unless they are able to get a good premium, taking into consideration the interest costs incurred by them and no discount having been offered to them during the allotment.

An investment banker said that going by the huge over-subscription, there could be significant demand for the shares when it enters the secondary market on Monday. The IPO garnered a whopping Rs 7.52 lakh crore as against the needed Rs 11,700 crore and was subscribed in less than 60 seconds.

"If the listing goes anywhere below Rs 550, retail investors would be highly disappointed which could lead to pandemonium in the market. Also if the scrip falls below issue price, then the overall market could also fall sharply," Arun Kejriwal of Kejriwal Research and Investment services (KRIS) said.

The first sixty seconds would again be crucial for the company as Ambani gives the opening bell and sees his company's share list on bourses on Monday.

But the challenge would be to sustain the share price above the offer price of Rs 450 and offer a reasonable profit to people who have invested in the IPO. Considering that the landscape of Indian financial market has changed dramatically since his IPO, it could be a tough call, said a broker.

"Every strength of the group will be tested on Monday, considering that the sentiments are down, markets are volatile, grey markets premiums are practically absent and there are enough forces that will make every effort to push the issue price down," said another broker.

It would be interesting to note the strategy of bears in the market who would want to cash in on the downward trend and hammer the stock on the first day.

Reliance Power IPO had witnessed a grey market premium of Rs 450 at the time of launch with market speculating that the issue would open around Rs 900-950 and close around Rs 750-800.

However, with markets correcting sharply, these premiums now eroded to Rs 50-100 with practically no trades. There are even guesses, though remote, that the issue may go below the offer price.

"Its time to test Anil Ambani's stamina, not on his jogging track, but on bourses. He has been a master of this game and lately practising hard, lets see the outcome" said an investor.

SHARE THIS ARTICLE ON
Close
In response to another question, Sitharaman said it was for the federal tax body, the GST Council, to take up this issue when it sees fit.
In response to another question, Sitharaman said it was for the federal tax body, the GST Council, to take up this issue when it sees fit.

Centre, states need to discuss fuel taxes, says Sitharaman

By Gireesh Chandra Prasad, Hindustan Times, New Delhi
PUBLISHED ON MAR 06, 2021 02:15 AM IST
  • In an interaction with members of the Indian Women’s Press Corps (IWPC), Sitharaman said that consumer sentiment about the tax burden on auto fuel was understandable.
Close
The Mukesh Ambani-led company expects to vaccinate around 900,000 people, including family members of employees, the company said.(Reuters representative image)
The Mukesh Ambani-led company expects to vaccinate around 900,000 people, including family members of employees, the company said.(Reuters representative image)

Reliance to bear the cost of covid shots for its staff

By Kalpana Pathak, Hindustan Times, Mumbai
PUBLISHED ON MAR 06, 2021 02:10 AM IST
  • Nearly 1.1 million vaccine doses were administered to people above the age of 60 and those in the 45-59 age group till Thursday.
Close
The Survey said a major challenge most firms face is the complex architecture of the governance framework, including the density of legislation and statutory compliances.(MINT_PRINT)
The Survey said a major challenge most firms face is the complex architecture of the governance framework, including the density of legislation and statutory compliances.(MINT_PRINT)

Govt plans to scrap 6,000 compliances

By Asit Ranjan Mishra, Hindustan Times, New Delhi
PUBLISHED ON MAR 06, 2021 02:04 AM IST
  • Mohapatra said the idea came during Modi’s meeting with Marriott International president and chief executive Arne Sorenson, who complained about the complex regulations in starting and running a hotel in India.
Close
Flush with liquidity and in tandem with Reserve Bank of India’s (RBI’s) repo rate cuts since March last year, banks have been lowering their lending rates.(Hemant Mishra/ Mint file photo)
Flush with liquidity and in tandem with Reserve Bank of India’s (RBI’s) repo rate cuts since March last year, banks have been lowering their lending rates.(Hemant Mishra/ Mint file photo)

ICICI cuts home loan rates to a decadal low

By Shayan Ghosh, Hindustan Times, Mumbai
PUBLISHED ON MAR 06, 2021 02:00 AM IST
  • ICICI Bank’s move comes days after rival lenders such as State Bank of India (SBI), Kotak Mahindra Bank and Housing Development Finance Corp. Ltd cut their home loan rates.
Close
Index funds and ETFs (exchange traded funds), which are passive in nature, will also be required to vote.(PTI File Photo)
Index funds and ETFs (exchange traded funds), which are passive in nature, will also be required to vote.(PTI File Photo)

Voting on corp resolutions compulsory for MFs: Sebi

By Neil Borate, Hindustan Times, Mumbai
PUBLISHED ON MAR 06, 2021 01:57 AM IST
  • These votes will have to be disclosed to unit holders under existing regulations. Voting will be at the MF level (rather than scheme level).
Close
Passenger vehicle manufacturers have been witnessing a sustained increase in retail sales on the back of improvement in economic activity and increased preference for personal mobility to avoid Covid infection.
Passenger vehicle manufacturers have been witnessing a sustained increase in retail sales on the back of improvement in economic activity and increased preference for personal mobility to avoid Covid infection.

Toyota SUV sales may skid on gaps in chipset supply

By Malyaban Ghosh, Hindustan Times, New Delhi
PUBLISHED ON MAR 06, 2021 01:55 AM IST
  • Supply of vehicles from Maruti Suzuki India Ltd—as part of the alliance with Suzuki Motor Corp—has helped Toyota increase its domestic market share in the premium hatchback and entry-level SUV segment, where it was not present before.
Close
ASI data is the most important source of industrial statistics of the registered organised manufacturing sector of the economy.(Reuters)
ASI data is the most important source of industrial statistics of the registered organised manufacturing sector of the economy.(Reuters)

Total factories in India grew by 2% in 2018-19

By Abhishek Jha, Hindustan Times, New Delhi
PUBLISHED ON MAR 06, 2021 01:51 AM IST
  • The top three states by GVA were Maharashtra, Gujarat, and Tamil Nadu. They had a share of 41% in the total GVA. Rural India added nearly as much GVA (49%) as urban India (51%).
Close
It is often believed that taxes on fuel affect the rich more than the poor, as the latter do not own vehicles.(Amal KS/ Hindustan Times)
It is often believed that taxes on fuel affect the rich more than the poor, as the latter do not own vehicles.(Amal KS/ Hindustan Times)

How do India’s fuel taxes impact the less affluent?

By Vineet Sachdev, Hindustan Times, New Delhi
UPDATED ON MAR 06, 2021 05:44 AM IST
  • Using average consumption shares to calculate the burden of an indirect tax has a problem.
Close
Meanwhile US crude oil inventories dropped by 1.7 million barrels in the week to Jan. 1 to 491.3 million barrels, data from industry group the American Petroleum Institute showed late on Tuesday.(Reuters file photo)
Meanwhile US crude oil inventories dropped by 1.7 million barrels in the week to Jan. 1 to 491.3 million barrels, data from industry group the American Petroleum Institute showed late on Tuesday.(Reuters file photo)

India says OPEC+ decision to extend oil output cuts will hit economic recovery

Reuters, New Delhi
PUBLISHED ON MAR 05, 2021 10:47 PM IST
Oil prices jumped more than 2% on Friday, hitting their highest in nearly 14 months in reaction to the decision.
Close
As much as 75 per cent of Nasdaq companies do not have at least one woman and one under-represented minority or LGBT member on the board, the report says.(Pixabay | Representational image)
As much as 75 per cent of Nasdaq companies do not have at least one woman and one under-represented minority or LGBT member on the board, the report says.(Pixabay | Representational image)

Gender inequality has cost world USD 70 trillion since 1990, finds report

PTI, Mumbai
PUBLISHED ON MAR 05, 2021 09:47 PM IST
The report also notes that full gender equality globally can increase the world GDP by up to USD 28 trillion by 2025.
Close
A woman looks at a gold necklace in a shop in Noida in this file photo.(Virendra Singh Gosain/ HT Photo)
A woman looks at a gold necklace in a shop in Noida in this file photo.(Virendra Singh Gosain/ HT Photo)

Gold price falls further to 44,344, sets retail buyers on buying spree

By hindustantimes.com | Edited by Ayshee Bhaduri, Hindustan Times, New Delhi
UPDATED ON MAR 05, 2021 09:07 PM IST
  • Retail buyers continued to purchase gold in India as prices declined to a near one-year low.
Close
In case of the mutual funds having no economic interest on the day of voting, Sebi said it may be exempted from compulsorily casting of votes.(PTI File Photo)
In case of the mutual funds having no economic interest on the day of voting, Sebi said it may be exempted from compulsorily casting of votes.(PTI File Photo)

Sebi lays guidelines on votes cast by mutual funds

Posted by Harshit Sabarwal | PTI
PUBLISHED ON MAR 05, 2021 06:52 PM IST
Mutual funds, including their passive investment schemes like index funds, exchange-traded funds (ETFs), will be required to cast votes compulsorily in respect of related party transactions of the investee companies and corporate governance matters, Sebi said in a circular.
Close
The overall reserves had increased by USD 169 million to USD 583.865 billion in the previous reporting week.(HT File Photo)
The overall reserves had increased by USD 169 million to USD 583.865 billion in the previous reporting week.(HT File Photo)

India's forex reserves increase by USD 689 million to USD 584.55 billion: RBI

PTI, Mumbai
PUBLISHED ON MAR 05, 2021 06:14 PM IST
The reserves, which have been steadily increasing over the last few months, had touched an all-time high at USD 590.185 billion for the week ended January 29.
Close
FILE - In this Wednesday, April 8, 2020, file photo, the sun sets behind an idle pump jack near Karnes City, USA. Members of oil producer cartel OPEC and allied countries are meeting online Thursday March 4, 2021, considering a possible increase in production now that prices have recovered to near their pre-pandemic levels. (AP Photo/Eric Gay, File)(AP)
FILE - In this Wednesday, April 8, 2020, file photo, the sun sets behind an idle pump jack near Karnes City, USA. Members of oil producer cartel OPEC and allied countries are meeting online Thursday March 4, 2021, considering a possible increase in production now that prices have recovered to near their pre-pandemic levels. (AP Photo/Eric Gay, File)(AP)

OPEC ignores India's call; Saudi asks New Delhi to use cheap oil bought last yr

PTI, New Delhi
PUBLISHED ON MAR 05, 2021 05:51 PM IST
India had purchased 16.71 million barrels of crude in April-May, 2020 and filled all the three Strategic Petroleum Reserves created at Visakhapatnam in Andhra Pradesh and Mangalore and Padur in Karnataka.
Close
Finance Minister Nirmala Sitharaman interacts with business leaders and captains of industry from various sectors at a meeting, in Chennai on Friday. (ANI Photo)
Finance Minister Nirmala Sitharaman interacts with business leaders and captains of industry from various sectors at a meeting, in Chennai on Friday. (ANI Photo)

Tax cut should be joint call of Centre, states: Sitharaman on high fuel prices

PTI, New Delhi
UPDATED ON MAR 05, 2021 09:30 PM IST
Taxes on petrol and diesel make up for about 56 per cent of the record high diesel rates.
Close
SHARE
Story Saved
OPEN APP