NHPC and Adani Power Stocks fall below their listing price
Incidentally on September 04, 2009 (Friday) , both the much hyped power IPOs that came to the primary market, Adani Power and NHPC, closed below their issue price. So many investors flocked at these IPOs as they oversubscribed many times hoping to book smart listing day profits. But however, they were not as fourtunate as they hoped. And if market analysts are to be believed, this will surely put pressure on the forthcoming IPOs, even if some of those were from outside the power sector.
On Friday, Adani Power, which had offered its shares in the IPO at Rs 100, closed on the NSE at Rs 98.65—a marginal discount from its IPO price of Rs 100. The company’s IPO closed on July 31 and the stock was listed on August 20.
In the case of NHPC, the slide below the IPO price was faster than in case of Adani Power. In less than a week of its listing on September 1, the stock fell below its offer price on Friday to close at Rs 35.25. The IPO closed on August 12.
In the IPO, NHPC shares were offered at Rs 36, at the higher end of the Rs 30-36 price band after the issue was subscribed nearly 24 times. There was exceptional interest from the high net-worth individuals (HNIs)—who mostly apply on borrowed money for short-term listing gains and the HNI portion was subscribed over 56 times.
Source: Economic Times
