Reliance Power - IPO Prospects

Issue Period: Jan 15 to Jan 18
Price Range: Rs.405 to Rs.450
Minimum Mkt Lot: 15 shares
Offer Size: Rs.10500-11500 crore
Retail Discount: Rs.20/- (for both Payment options)
Recommendation: Strong Subscribe (For Long-term)
Grade: Good & Attractive
Expected Gains on Listing Day (in percentage terms): 65% to 85%
Expected Range of Listing Price: Rs.740 to 840**
Chances of winning Allotment: Strong

Recommendation

1) Reliance Power Limited has laid out an abmitious plan of 28,200 MW power generation capacity, none of which are operational as of now, and also factoring in the long gestation period needed in the execution of such large power projects, there may be some volatility in the stock movement of the company after listing in short to medium-term. But, all-in-all, the company should be able to meet the planned expectations over a long-term period. Hence we recommend investors to subscribe to the issue with long-term perspective for more enhanced & superior returns.

2)R factor always work in Indian Stock Market.