Relaince Power Crashes

Friday, May 30, 2008 | | |

Reliance Power Crashed 8% before the record date on June 2nd.High Volatility was witnessed in the stock thru out the trading day.There was utter confusion over the price adjustment and the stock slided to 231.
Had the price not moved up before the record date, the share would have plunged even more after the bonus. If the price goes up before bonus, it will be adjusted after the bonus," said a broker
For the retail inavestors who bought at the IPO price of Rs 430, the average price after bonus would have been around Rs 270 a share.

However, the stock is down around 8 per cent from its IPO price. The retail investors who could not exit above Rs 270 have ended up losing over 20 per cent. A mere 10,000 shares were traded above Rs 300 during the day