Friday, January 18, 2008

Reliance Power IPO - how should a retail investor approach it?

Reliance Power IPO is causing daily news and todays is its last day of offering. The price band is 405-450. This is 4th day - the last day and untill tommorrow the issue was over subscribed about 38 times - I dont know exact figures but it will be around it. Now should you apply to this one or not?
I think its not a good company to remain invested in. Relaince Power have no mega projects going on - all it has are promises. Other power companies in India like Tata Power, NTPC look more strong than Reliance Power, just for comparison NTPC will have a capacity double to that of Reliance Power in 2016 - even we consider all the promises of Reliance Power to be true. I feel we should make just listing gains in this IPO as i think above 800 the Reliance Power share is over priced.

3 comments:

renegade said...

ur post r v.insightful...jst happnd to drop by...but wud dig thru all d archives fr sure.

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Anonymous said...

It seems that you predicted correctly but do you think this is good time to invest in relince power at cost of 156?