If you were feeling a void in your life because the excitement surrounding the Coal Inda IPO is dying down gradually – I have good news for you. The Power Grid Follow on Public Offer (FPO) is going to commence on the 9th November and will close on the 12th November for retail investors, while it will close a day earlier for Qualified Institutional Bidders (QIB).
I will do a full review on Power Grid a little later when I get my hands on the prospectus, but for this post I wanted to see how the Power Grid IPO performed, and how it’s stock moved after listing.
A quick search through news archives reveal that Power Grid scorched on listing in 2007. The IPO was priced for Rs. 52 and ended the first day with a gain of 93%. The first day also accounted for 21% of the combined turnover of the NSE and BSE.
The move since then hasn’t been that spectacular and shows that the people who bought it post listing didn’t get that good a deal. Before you jump to any conclusions about investing in the IPO based on this chart remind yourself in a high pitched fast paced ridiculous voice that past performance is not an indicator of future returns.
Enjoy your Sunday!