Check IPO pricing
If not tackled effectively, market boom may soon lead to investors’ doom.
Does anyone remember Anil Ambani's Reliance Power IPO in 2008? The highly hyped public issue was launched in February that year during the stock market boom.The IPO was oversubscribed 73 times, recording five-million applications. The issue price was Rs 450 ($9.15) per share. At the grey market, the price was around Rs 900 ($18.30). Reliance Power's maiden IPO garnered an astronomical $190 billion from subscriptions. It was the world's biggest IPO of its time. Investors simply went crazy as Reliance Power's pre-issue ad campaign's punch line — Power On, India On — created a massive euphoria around the company's grand future in the energy deficient country.