The Hindu : Business : ‘Disappointed over lower closing’

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Tuesday, Feb 12, 2008
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‘Disappointed over lower closing’

Special Correspondent

NEW DELHI: Expressing disappointment over the poor showing of Reliance Power shares on the first day of listing on the stock exchanges, the Anil Dhirubhai Ambani Group on Monday said the decline was not Reliance Power-specific but simply mirrors the sharp meltdown in the global capital markets over the past three weeks.

In a statement here, an official spokesman of the company said that losses were not for RPL alone but even for market bigwigs, including Mukesh Ambani’s Reliance Industries, ICICI Bank and other blue chip companies which were much higher at up to 40 per cent.

The spokesman said a large number of pivotals, including RIL, ONGC, NTPC, DLF, ICICI Bank, BHEL and L&T had actually declined in a much larger range of 20-40 per cent in the same period, since January 14. “We are naturally disappointed that the Reliance Power stock closed lower than the IPO price on the first day of listing,” the statement said.

From the time of the IPO, the Sensex is down 20 per cent, while the Reliance Power stock was down 17 per cent from the IPO price. The Reliance Power stock has simply been marked-to-market for this decline, in a single day on listing. “We remain extremely confident of delivering superior long-term returns to our over four million shareholders on their investments in the Reliance Power IPO,” it added.

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