Grey mart: Rs 1L in Rel Power IPO will earn 9% in 20 days
Reliance Power (REPL) seems to have electrified grey market operations in Ahmedabad with operators willing to shell out as much as Rs 9,000 for every application of Rs 1 lakh.
In the bustling grey market in Gujarat, such high rates are unheard of. The last benchmark for hectic activity was the Mundra Port and SEZ IPO in November when the grey market started buying applications for Rs 7,500 in the last stages of the issue.
With the REPL offer ready to hit the market on January 15, the grey market is trading the shares and the applications. It basically means that if you have Rs 1 lakh to invest when the IPO opens, you have a secured 9% return within 20 days of closing of the issue when the stock would be listed.
After Sebi cleared REPL’s IPO, grey markets had resumed trading in the stock with premium saudas (trades) at Rs 340-350 and application buying rate at Rs 7,500. While the premium has zoomed to Rs 390-400, the applications rate touched Rs 9,000 and could break the Rs 10,000 mark by the time the IPO hits the market, sources said.
The excitement on the counter in the grey market has come on the heels of news that REPL will offer 5% discount to retail investors, who will also get an option to pay only 25% of IPO amount at the time of application.
Source : http://timesofindia.indiatimes.comLabels: Grey Market, IPO, Rel Power IPO, REPL, Retail Investor, SEBI |
