Reliance Petroleum IPO surges 70%

Reliance Petroleum IPO lists touching Rs101.95, a 70% premium to IPO price of Rs60 before intra-day profit taking sees share stabilise at Rs85 levels.
May 11, 2006
Reliance Petroleum commenced trading on May 11 yesterday at more than a 70% premium to the IPO price of Rs60 $1.36 - touching an intra-day high of Rs101 $2.29. However, profit-taking saw the share close at Rs85 $1.92. In excess of 375 million shares changed hands during the course of ThursdayÆs trading session across both exchanges, the NSE and BSE. Some fund managers predicted that further profit taking could see the share finally settle at Rs80 $1.81 level, still representing a healthy premium of 33% to issue price.

Four general observations can be drawn from the deal's opening day performance

First, that the decision of the sponsors, Reliance Industries RIL to price...
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