Reliance Power listing on monday fell flat on its face ending the day at discount. Reliance Power listed at Rs 430 (issue price Rs 450) in the morning session of the trade and fared poorly, disappointing the millions who had invested in Reliance Power(REPL) stock. Desperate investors tried to sell off their stock as prices quickly fell to Rs 390 before ending the trading day at Rs 420. The listing of Reliance Power stock at Rs 430 about Rs 20 below its issue price surprised many. Market analysts expected the stocks to be listed at around Rs 550-600.

This lacklustre opening by Reliance Power stocks surprised many especially after the hype created by its IPO(Initial Public Offering). REPL has the largest subscription in an IPO in the history of global market. It was over subscribed for a record 72x times. The very first day of the IPO saw the stocks being over subscribed 9x times. About 50 lakh retail investors participated in the IPO. The IPO also saw a record for more than 500 Qualified Institutional Buyers(QIB s) with Rs 500,000. Crisil, a leading rating agency, reate the IPO four out of five. In spite of the IPO generating huge interest among investors, the fall in the prices raises serious questions about the listing prices. Companies are now scared of entering the market. Wockhardt Hospitals and Emaar MGF withdrew their public offering fearing the current market situation.