Bid adieu to the days when IPOs were considered as mere financial products. The way they are being branded, positioned and advertised these days, they are nothing short of acquiring the stature of a white-good brand.
‘Gone in sixty seconds’ puffed market watchers, even as
they saw the much-awaited Reliance Power IPO being lapped up hook, line and sinker by eager retail investors and frenzied institutional investors. The IPO, from the Anil Ambani stable, ended with an oversubscription figure of 73 times, mopping up close to $200 billion against a required $3 billion. Did the younger scion of the Ambani clan achieve the near-hysterical response of investors on the back of Reliance Power’s visible business prowess and profitability figures? Not really!
Even during the build up to IPO, many analysts continued to point out that the first project that is expected to generate any meaningful earnings for Reliance Power would go on stream only in December 2009. Yet, millions betted on Reliance Power on the back of the great media buzz that Ambani Jr. managed to create around the IPO. ‘Power on, India on’ claimed Reliance Power and repeated it a million times a day – via 250 Reliance World, 1,300 Reliance Express and 2000 Reliance Money outlets, 62 Adlabs theatres, Big FM, caller tunes, apart from 30 to 60 second spots across 60 TV channels and over 50 radio stations. Did unsuspecting investors have a chance of missing this bait (which cost Rs.30-35 crore, spread over two weeks)?
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
‘Gone in sixty seconds’ puffed market watchers, even as
they saw the much-awaited Reliance Power IPO being lapped up hook, line and sinker by eager retail investors and frenzied institutional investors. The IPO, from the Anil Ambani stable, ended with an oversubscription figure of 73 times, mopping up close to $200 billion against a required $3 billion. Did the younger scion of the Ambani clan achieve the near-hysterical response of investors on the back of Reliance Power’s visible business prowess and profitability figures? Not really!Even during the build up to IPO, many analysts continued to point out that the first project that is expected to generate any meaningful earnings for Reliance Power would go on stream only in December 2009. Yet, millions betted on Reliance Power on the back of the great media buzz that Ambani Jr. managed to create around the IPO. ‘Power on, India on’ claimed Reliance Power and repeated it a million times a day – via 250 Reliance World, 1,300 Reliance Express and 2000 Reliance Money outlets, 62 Adlabs theatres, Big FM, caller tunes, apart from 30 to 60 second spots across 60 TV channels and over 50 radio stations. Did unsuspecting investors have a chance of missing this bait (which cost Rs.30-35 crore, spread over two weeks)?
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
5 comments:
The IPO, from the Anil Ambani stable, ended with an oversubscription figure of 73 times, mopping up close to $200 billion against a required $3 billion
great article bro
stock market i hate this world
IPO's from reliance is great
i think ipo stands for initial public opening
lol, great information miss sheeka
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