The Reliance Power stock has had a shocking listing (excuse the pun). With an issue price of Rs. 450, the stock started off at Rs. 530 and then went into a steep fall. As I write, it’s standing at Rs. 420, and it had briefly gone below the 400 levels too.
Obviously this is doom for the greedy IPO followers, and specially for the loser loan takers. It’s harsh on them that the price is below the offer price, and worse if they have to pay interest on a loan! Plus, it’s likely that they got some obscenely low number of shares. (if you were lucky you would get 17 shares, Rs. 9K worth – for an investment of 1 lakh, the rest of the money being refunded. You still have to pay interest if you borrowed the money, until you get the refund.)
RPower seems to have taken the Nifty with it. At 4900, the Nifty looks like it’s ready for another steep fall. I should get out of whatever little investments I have
Disclosure: Long some stocks and mutual funds. No short positions. (Unfortunately)