To put in perspective,
- Reliance Power is yet to commence business or show income from operations,
- investors from across the world placed bids worth $200 billion for its shares worth $2.9 billion on offer.
- Retail investors have put in 5.1 million applications for shares worth $47 billion or Rs 188,000 crore.( the collections are a fourth of the total direct tax collections for last year. )
- The IPO was comppletely subscribed from the minute of its opening, as if the shares would come on a first come first serve basis!
- 10 Lakh new Demat accounts were opened in just five days!!Such was the hype that everybody wanted to be a a millionaire!!
- Reportedly, Applictions have been sold for 10000 bucks in the gray market!!
- Gray markets of Gujarat have reportedly started trading the stock at a premium of Rs300-400.
Now that the issue has subscribed to about 15 times for RI, they are expected to be allotted 15 shares,i.e. worth Rs6450,with a refund of Rs.19425. So the question of RIs with partial payment not being able to sell immediately is not applicable anymore.
With an expected premium of Rs300, one is expected to make about Rs4500 out of the deal, not taking into account the opportunity cost.
So, whats' the HYPE for?
what about those who have taken applications for 10000 bucks!!I guess its time for stop cheque payments....
As far as I'm concerned, I'll be queuing up for sale on the listing day too, with lakhs of others, and pocket the five thousand.A 100% return in a month is not that bad actually!!
The other man smiling(read ecstatic) is one Mr.Anil Ambani,who might well trounce BILL GATES to become the richest person in the world on the listing day....if the stock lists at Rs900.