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Some reasons are:
- It was entirely/heavily hyped up. It was oversubscribed by over 15 times and people were crazy about that stock
- It was over priced. A company like NTPC that has an existing power production capacity of 20,000 KW is being traded at Rs. 200/- and a new company that is proposing a 25,000 KW power production after 3 years is being offered at Rs. 450/- on an IPO
- Everyone wanted to make a quick buck. People thought that Reliance power would touch Rs. 800/- on the day of listing and keep going higher and they can sell it to make a hefty profit.
- The basic logic of the Stock Market was missed. If everyone wants to sell their shares - a stock price always goes down
What else can I help you with?
What is the effect of reliance power ipo on stock market?
The Reliance Power IPO, launched in 2008, had a significant impact on the stock market, particularly in India. It generated substantial investor interest and was one of the largest IPOs at the time, which boosted market sentiment and led to increased trading activity. However, following its listing, the stock faced volatility and underperformance, contributing to discussions about IPO valuations and market speculation. Overall, while it initially stimulated excitement, it also highlighted risks associated with high-profile IPOs in the stock market.
Who gets the money in an IPO?
The company that is issuing the IPO gets the money.
What is the difference between face value and offer price in IPO?
Face value of a share is the minimum value at which a share must be offered to the public. this represents the intrinsic value of the share. Offer price is the price at which people can buy the share in the market. For example: Reliance power offered equity shares of face value Rs. 10 at around Rs. 430 odd a few months back. (I am not exactly sure of the offer price of Reliance power) 10 is the face value 430 is the offer price
Indian share market ipo related topics?
Some IPO Related topics are:The IPO ProcessIntermediaries Involved in an IPOTypes of IPO IssuesCategories of Investors for an IPO
Objective of ipo?
what is the full form of ipo
What are the reasons for the over subscription of reliance power ipo?
Infrastructure especially power was considered by investors as the key area to invest in as it was a sector all set to develop. Investor faith in the company was also proved by its historic over-subscription.
In what year did Reliance Steel and Aluminum Co - RS - have its IPO?
Reliance Steel & Aluminum Co. (RS)had its IPO in 1994.
Why was the FB IPO a failure?
What's IPO
What is the effect of reliance power ipo on stock market?
The Reliance Power IPO, launched in 2008, had a significant impact on the stock market, particularly in India. It generated substantial investor interest and was one of the largest IPOs at the time, which boosted market sentiment and led to increased trading activity. However, following its listing, the stock faced volatility and underperformance, contributing to discussions about IPO valuations and market speculation. Overall, while it initially stimulated excitement, it also highlighted risks associated with high-profile IPOs in the stock market.
In what year did Ideal Power Inc - IPWR - have its IPO?
Ideal Power Inc. (IPWR) had its IPO in 2013.
Is Mukesh Ambani the richest man on the earth?
Yes, since the latest stock market IPO of Reliance
In what year did Korea Electric Power Corporation - KEP - have its IPO?
Korea Electric Power Corporation (KEP)had its IPO in 1994.
Describe the factors that determine the success or failure of an IPO?
Bearish market conditions could lead to an unsuccessful IPO (Initial Public Offering).
In what year did China Ming Yang Wind Power Group Limited - MY - have its IPO?
China Ming Yang Wind Power Group Limited (MY)had its IPO in 2010.
Who gets the money in an IPO?
The company that is issuing the IPO gets the money.
What is the difference between face value and offer price in IPO?
Face value of a share is the minimum value at which a share must be offered to the public. this represents the intrinsic value of the share. Offer price is the price at which people can buy the share in the market. For example: Reliance power offered equity shares of face value Rs. 10 at around Rs. 430 odd a few months back. (I am not exactly sure of the offer price of Reliance power) 10 is the face value 430 is the offer price
Indian share market ipo related topics?
Some IPO Related topics are:The IPO ProcessIntermediaries Involved in an IPOTypes of IPO IssuesCategories of Investors for an IPO
