Tuesday, January 10, 2017

Reliance Power : where has the midas touch gone.

Reliance group is known for creating wealth for investors, particularly small and retail. With this in mind investors flocked the IPO of Reliance Power, in early Jan, 2008. It was over subscribed 69 times, creating a sort of an history, for such a mega issue.

The IPO was priced at Rs 450.   The IPO was lead managed by who is who of the investment banking. It carried IPO grade of 4 awarded by CRISIL.

The BRLMs included  Kotak Mahindra Capital Company Limited, UBS Securities India Private Limited, ABN AMRO Securities (India) Private Limited, Deutsche Equities India Private Limited, Enam Securities Private Limited, ICICI Securities Limited, JM Financial Consultants Private Limited and JPMorgan India Private Limited CO BRLM Macquarie India Advisory Services Private Limited and SBI Capital Markets Limited.

In the 7 years, the stock has nose dived to Rs 40 level, thus eroding 90% of capital.

The midas touch the group had in early 80s, appears to have vanished.

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