11 Feb, 2008

MUMBAI: Reliance Power from the stable of billionaire Anil Ambani on Monday became the first pedigreed company to see its maiden offer, among over a dozen big IPOs since 2006, close below the issue price in debut trade. Even on listing premium, the company figured second from the bottom among the major issues of recent times. After listing at Rs 547 a share, reflecting a premium of just 21 per cent and ahead of only realty giant DLF among all the major IPOs of recent times, Reliance Power closed the day at Rs 372.50 a share. The company had fixed the issue price at Rs 450, making it the biggest IPO ever to hit the Indian market. On the contrary, a dozen major IPOs including Reliance Petroleum, a firm in the group headed by elder brother Mukesh, A V Birla group's IDEA, Kishore Biyani group's Future Capital, PSUs -- Power Finance Corp and Power Grid Corp had all closed the debut trade over the issue price. However, five of these firms - Reliance Petroleum, Future Capital, DLF, IDEA and Omaxe closed the first day of trading below their listing price.