Reliance Power slips into the red despite listing at 21% premium

Mumbai: Choppy market conditions appear to have got better of billionaire Anil Ambani as his Group firm Reliance Power on Monday slipped into negative within minutes of listing at Rs547.80, a premium of 21% over its issue price.
The issue had created a phenomenal demand of Rs7,50,000 crore at the close of the IPO last month, thereafter being quoted at the grey market at a premium of Rs450-550 per share, against an issue price of Rs450 each.
However, analysts said that it was commendable for the company to hold onto a price of over Rs400 in a turbulent market, that has already seen shelving of two major IPOs -- EmmarMGF and Wockhardt Hospitals last week.
Touted as the biggest ever IPO to hit the Indian market, the issue failed to hold on to the investors' interest and the hype that saw the scrip touching a high of up to Rs1,000 a share in the grey market, soon after the listing at the BSE with Anil ringing the customary bell to signal commencement of trade.
After touching a low of Rs389 a share from a high of Rs599.90, Reliance Power recovered some of its lost ground and was hovering around the level of Rs440 a share on the Bombay Stock Exchange just before noon.
The listing took Reliance Power's market capitalisation to over Rs1.23 lakh crore, joining the top 10 firms listed on the bourses.
The scrip had also touched an intra-day high of Rs599.90. But its membership in the
Rsone-trillion marketcap group was short-lived as it slipped below the listing price.
The scrip touched an intra-day low of Rs386 a share at the National Stock Exchange.
Immediately after the listing Anil Ambani told PTI on phone that, "we are all proud that the listing of Reliance Power today has firmly established Reliance Anil Dhirubhai Ambani group as one of the top two business houses in the country. It is a great honour that Reliance Power has been listed with the distinction of having the world's largest family of nearly 42 lakh shareholders in a single company."
Mukesh Ambani-led Reliance Industries tops the marketcap chart with a valuation of over Rs3.44 lakh crore followed by state-run ONGC at Rs2.07 lakh crore, NTPC (Rs1.67 lakh crore), Bharti Airtel (Rs1.63 lakh crore) and realty major DLF (Rs1.36 lakh crore).
Anil said that he was delighted that Reliance Power has today become the sixth listed company of the group and the second largest in terms of market capitalisation. Reliance Communication, which Anil received as part of family settlement with Mukesh, was listed in 2006 but not through the IPO route.
Reliance Power has 2,25,98,21,896 equity shares of a face value of Rs10 each listed on the bourses on Monday. The stock has witnessed huge trading volumes with nearly eight crore shares changing hands on the bourses by mid-day.
The company had mopped up Rs11,560 crore through its Initial Public Offer, attracting over five million bids from all categories of domestic and international investors. It had created a demand of shares worth over Rs7,50,000 crore, resulting in the offer being oversubscribed by about 73 times.
The portion reserved for Qualified Institutional Buyers was oversubscribed 82.5 times, while that for Non- Institutional Investors received bids for over 159 times the shares marked for them. The part reserved for retail investors was oversubscribed 13.6 times.
Reliance Power, with over 42 lakh shareholders has become the largest shareholder-base company listed on the stock exchanges. f