Hi, here is another observation of mine in case of Reliance Power IPO according to what I have seen and heard today :
Check out this :
Could REPL follow in RPLs footsteps post-listing...
In case of reliance power IPO, mass public has sold other stocks and have atleast left the bullish position today and we saw the market crashing today... Poor people, see when you're selling in panic, somebody is on the other side buying the same thing! Today people and institutional investors sold in huge so that they can take position in Reliance Power IPO today. The mob lost their stock holdings today + they gave opportunity in bulk for some other institutional investors most probably to get prospective stocks at low prices due to selloff mentality of all people in the mob... So conclusively, they lost and somebody to the opportunity to make money in those stocks in the short term in the coming future!
Another thing, if you go through the article above, then you find the market was moved upwards due to THIS IPO maybe by institutional market movers so that when THIS CURRENT sell-off takes place, they do not end up loosing their valuations... So they moved the market up... now its moving down... and as per the above article on moneycontrol, RIL may corrent to up to 30% from here IF the market has to go down truly and if the scenario right now is to duplicate the scenario that existed in case of Reliance Petro IPO!
Anyway, for now, just tell me one thing... now since most of the people have subscribed to Relinace Power IPO only because they believe and everyone belives it will get listed at 800+ and their investment will become double in one day... Most of the subscribers just want to offload their stocks and want to make money in no time as soon as the stock get listed and as they believe this stock will get listed at 800+ ... TELL ME WHAT HAPPENS IN THE REAL MARKET WHEN THERE IS A HUGE AMOUNT OF SELLERS OF A STOCK JUST READY TO OFFLOAD THEIR STOCK IN ORDER TO BOOK PROFITS AS EARLY AS POSSIBLE!
I believe the lobby of institutional investors, the market movers will remain calm for some time and will let the stock fall.... They would wait to fetch this stocks at true low prices in order to make long term real good profits by buying this stock at lows BECAUSE ALL EXPERTS TRULY ALREADY FEELTHIS STOCK IS OVERPRICED FUNDAMENTALLY... CHECK OUT THIS ARTICLE...
The voices of valuations etc. are totally lost; people back calculate from Rs 850-900. WHAT IF For some reason it does not quote at Rs 850-900, but only at Rs 500
The the calculation of the game...
Ambani bandhus have around 200 crores of this stock with them...
Now even if the stock gets listed at Rs.500, then if Ambani bandhus sell only 4 crore shares in the market, then they can recover their invested 2000 crores completely and the whole project will be with them for free!! They just encashed their reputation thats it!