Mumbai, February 11
Poor showing by Reliance Power, Anil Ambani's mega-IPO, on listing today took its toll on the stock markets. Minutes after Reliance Power fell below its lower than expected listing price of Rs 530 on the Nifty and Rs 430 on the BSE, the indices tanked under selling pressure from weakened sentiment.
The Sensex fell by more than 1,000 points during intra-day before recovering marginally to close 4.8 per cent or 833 points lower at 16,630 levels. In broader markets, the Nifty was down 263 points or 5.1 per cent closing at 4,857 levels.
Reliance Power slipped 32 per cent or Rs 175 a share from the listing price to close at Rs 372.50 while the Anil Ambani’s other group companies also lost up to a fifth of their value.
ADAG group firms lost a total of over $12 billion or Rs 50,000 crore after Anil rang the customary opening bell at Bombay Stock Exchange to announce listing of Reliance Power through IPO, the first one since he parted ways with elder brother Mukesh in 2005.
The IPO, which generated a whopping demand of Rs 7,50,000 crore to make it the biggest ever maiden offer in India's capital market history, left investors disappointed. The scrip had commanded a premium of up to Rs 550 per share in the grey market ahead of listing.
Listing at Rs 547.8, a premium of 21 per cent over the issue price of Rs 450, Reliance Power slipped into the red within a minute and thus lost its position from the coveted group of top 10 valuable entities on the market.
At the close of trading, market capitalisation of his group came down to Rs 3,03,300 crore from Rs 3,54,758 crore (including Reliance Power at the issue price).
In comparison, value of the market leader Reliance Industries group, led by Mukesh, was down by about Rs 26,000 crore to Rs 4,01,200 crore.
Power scrips took a hammering as the effect of Reliance Power rubbed off on the entire sector. Reliance Energy at Rs 1,582 was the worst hit, falling 19.4 per cent or Rs 381. Reliance Communication, Hindustan Unilever, Mahindra & Mahindra, SBI, NTPC, Reliance Industries and ITC Limited were some of the other main losers.
News of the rupee declining against the dollar helped tech scrips like Infosys Technologies, TCS and Satyam Computer ending in the green.
Also in the red were realty scrips that took a hammering on news that housing purchases are likely to be low in the coming quarters. The BSE realty index fell 6.3 per cent or 615 points. Major losers included DLF, Akruti City, Indiabulls Real Estate, Unitech Limited, Puravankara Projects, HDIL and Parsvnath Developers.
