This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7238411.stm
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Reliance Power falls 17% on debut | |
(about 1 hour later) | |
Shares in power plant builder Reliance Power, which was India's biggest stock market flotation slumped 17% on debut. | |
They were priced at 450 rupees ($11.54; £5.82), but fell sharply during its first day on the Bombay stock exchange. | |
Analysts are concerned Reliance Power's shares were overvalued after growing concerns about the effect of the global credit crisis. | Analysts are concerned Reliance Power's shares were overvalued after growing concerns about the effect of the global credit crisis. |
The company's shares sold out in sixty seconds when they were offered for sale to investors in January. | The company's shares sold out in sixty seconds when they were offered for sale to investors in January. |
Reliance Power plans to build more than a dozen power plants over the next 10 years to meet the increasing energy demands of India's fast growing economy. | Reliance Power plans to build more than a dozen power plants over the next 10 years to meet the increasing energy demands of India's fast growing economy. |
'Outrageous' | 'Outrageous' |
Reliance's billionaire chairman Anil Ambani dismissed claims the shares were overvalued, saying: "The potential of India's power sector remains strong." | Reliance's billionaire chairman Anil Ambani dismissed claims the shares were overvalued, saying: "The potential of India's power sector remains strong." |
One broker called the valuation "outrageous", while Angel Broking's Girish Solanki said: "The valuations must be seen in conjunction with the fact that currently Reliance Power has hardly any capacity which is operating." | One broker called the valuation "outrageous", while Angel Broking's Girish Solanki said: "The valuations must be seen in conjunction with the fact that currently Reliance Power has hardly any capacity which is operating." |
Reliance's disappointing opening comes less than a week after property developer Emaar MGF Land postponed its Indian flotation, citing stockmarket uncertainty. | Reliance's disappointing opening comes less than a week after property developer Emaar MGF Land postponed its Indian flotation, citing stockmarket uncertainty. |
Reliance Power's fall affected India's main Sensex index, which closed down 4.8% at 16,631. | |
There were a record number of share listings in India in 2007, but concerns about the global credit crisis are believed to be hitting investor confidence. | There were a record number of share listings in India in 2007, but concerns about the global credit crisis are believed to be hitting investor confidence. |
Previous version
1
Next version