Reliance Power Fall in Listing Needs Probe
New Delhi, Was there a hidden hand operating behind the scene which led to sharp fall in the value of Reliance Power after listing. This question is being asked as there are rumors that a mutual fund connected with group made large sales on listing day.
According to some brothers a mutual funds connected with the company sold nearly 40 lakh shares on major national exchanges. This created panic and led to major fall. Such fall on listing is certainly unprecedented and need to be looked into. It may be mentioned Anil Dhirubhai Ambani group is one of the biggest bull operator in Indian stock market.
It is clear that grey market expectations of listing at Rs. 900 level were unrealistic in view of rapid fall in international market.
Does it mean that promoter group joined the party and brought down the values. As large number of people have suffered, it is felt that there was need for inquiry by SEBI. This single episode has long term impact on market. This is also necessary to solve the puzzle. Which has amazed even long term market watchers.
One of the possible reasons given is that the world markets had gone down by more than 20-30% between the date of the issue and the listing, if promoter group had tried to maintain the prices at promised Rs. 900-1000 during the pre-IPO marketing, they would have come in to huge loss and therefore not to incur such losses, the group might have decided to make heavy sales to bring down the price of the shares themselves.
A complete investigation in a transparent manner can only solve this puzzle that has confounded several pundits and brought millions of investors on the verge of bankruptcy. The anger of investors, it is believed, would affect their perception of government complicity and the roles of the government machinery creating problems for the ruling coalition in the forthcoming general elections towards this year end. The political circles in the ruling party and the opposition parties who helped to bring this issue out, would like to believe that one year is a long time and the memory of Indian public is very short.
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