Power ON, Money gONe!

Reliance Power IPO from billionaire Anil Ambani-led group may have generated highest demand, but its listing premium could only be ranked the lowest after DLF among 10 major IPOs since elder brother Mukesh’s Reliance Petroleum [Get Quote] made its debut on the bourses in 2006.

At a price of Rs 547.8 per share, Reliance Power got listed at a premium of about 21 per cent, as against about 70 per cent that Reliance Petroleum got at its listing on May 11, 2006. Both the brothers have gone for IPOs on only one group firm so far since the family settlement in June 2005.

DLF of K P Singh possibly got the lowest premium of below 11 per cent over an issue price of Rs 525 a share, but the real estate giant currently figures among the top ten most valuable firms with its share price having nearly doubling since its listing in July last year.

The response was top-most at a premium of 75 per cent over the issue prices for shares of Edelweiss Capital, Religare Enterprises and Mundra Ports and SEZ.

However, in the case of Reliance Power, the retail investors could take a comfort from the concessional price of Rs 430 on which the listing premium would come to over 27 per cent as against 21 per cent over the issue price.

While pointing out that this possibly could be the lowest listing premium for any Reliance company till now, the analysts said that what is commendable is that Reliance Power was holding near the issue price level despite the

turbulence in the market that also saw shelving of two major IPOs, Emaar MGF and Wockhardt Hospital, only last week.