At what price will RPL list?

The much hyped RPL share will list tommorow and the million dollar question that remains to be answered is - at what price will it finally settle down? The IPO got a resounding thumbs up from the investors as it received bids worth Rs 137,000 crore, an oversubscription of over 50 times. The company had offered to sell 45 crore shares but ended up receiving applications for over 2226 crore shares!! The issue was made to part finance the Rs 27,000 crore (Rs 270 billion) export-oriented refinery being set up in a special economic zone, at Jamnagar in Gujarat.

The Economic Times reported today that "the total investor wealth from both Mukesh and Anil Ambani groups has nearly doubled since January 18 this year, when the erstwhile RIL began trading on a split basis following the implementation of the scheme of arrangement reached between the two brothers". This wealth creation will go one step further with RPL as RIL has 75% ownership of RPL and with each single rupee increase in the price of RPL, RIL is set to gain 337.5 crore (atleast on paper)! It would be interesting to see how Reliance manipulates the price of RPL, the general public and QIBs hold a small share in the company and Mr. Ambani can definitely take advantage of this. I'm not trying to suspect his intentions, but any businessman in his place would do the same.

Analysts expect the share to list at close to 100 but if one goes by the recent IPO trends and given the strength of Reliance Industries, 150 rupee mark cannot be ruled out. At what price will RPL list (and stablize)? Only time will tell.......stay tuned!