Reliance Power which was hovering near the Rs 400 level for major part of the day, slipped sharply in late trade, on fresh selling.
The BSE Sensex declined 833.98 points or 4.78% to 16,630.91 as poor debut of Reliance Power, which had come out with India's biggest IPO, last month, hit market sentiment. Market men had initially expected the price to double on debut, but stock market turmoil had lowered investor risk appetite and expectations were toned down subsequently with market men expecting a premium of about Rs 75-to Rs 150 above the IPO price on debut. The Reliance Power IPO was subscribed 73 times.
Reliance Power settled at Rs 372.50 on BSE, a discount of 17.22% over IPO price of Rs 450. The stock debuted at Rs 547.80 on BSE, a premium of 21.73% over the IPO price. The stock hit a high and low of Rs 599.90 and Rs 355.05.
Retail investors were offered shares at Rs 430 i.e. at a discount of Rs 20 per share.
The counter saw huge volumes of 6.38 crore shares on BSE.
The current equity share capital of Reliance Power is Rs 2259.82 crore. Face value per share is Rs 10.
Reliance Power IPO had got overwhelming investor response. The issue had got an aggregate commitment of over Rs 7.50 lakh crore, as against the issue size of Rs 11,560 crore.
Reliance Energy (REL) and closely held promoter group company, AAA Projects hold equal 45% stake in Reliance Power.
Reliance Power is developing 13 power generation projects with a capacity of 28,200 megawatt (MW).