IndiaSphere

Girish Nadkarni, ED- Capital Markets, Avendus Advisors said that for Reliance Power, initially people expected a 100% premium over its issue price but that has come down significantly. Retail investors can get reasonable amount of gains on listing. It may see 35-40% upside over the issue price on listing.

Excerpts of CNBC-TV18’s exclusive interview with Girish Nadkarni:

Q: What do you expect to see from Reliance Power listing next week?

A: I think the pricing that one expected initially which was a 100% premium to the issue has come down significantly but one would expect a reasonable amount of gain for the retail investors who have put in money. 35-40% upside over the issue price is what the market believes it will open at.

Q: How do you think things will shapeup from there because as we know for many of this strong blue chip IPOs, day one might be strong? But how do you expect things will shapeup for a story like Reliance Power from thereon?

A: We have seen all kinds of IPOs in the last two-three years. We have seen companies which have done very badly on listing even listing significantly at a discount to the issue price. But in a quarter over two quarters; we have seen some of the prices rally back based on performance. And some of the large real estate IPOs that came in somewhere in the last year did have some amount of volatility because of a weak opening and then this have rallied on the back of performance.