Will Adani Power, NHPC poor show impact Oil India IPO?

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Will Adani Power, NHPC poor show impact Oil India IPO?

With NHPC and Adani Power ending last week below their issue price, Moneycontrol.com explores the impact of that on the Oil India IPO.

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At the close of last week, both NHPC and Adani Power were trading below their issue price. Adani Power had listed on August 20 while NHPC had listed only on September 1.

Following this dismal performance, CNBC-TV18's Haresh Soneji had reported that high networth individuals who had resorted to leverage trading were incurring huge losses on both these issue. The immediate fallout was on Oil India and brokerages which offered funding to NIIs were worried whether they would buy this Oil India funding or not.

Moneycontrol.com spoke to experts to find out the impact. SP Tulsian of sptulsian.com says, "NHPC, another PSU IPO, has also recently disappointed giving not much profit to retail investors and losses to HNIs. At that time also, we have said that the government has become greedy by having stiff pricing and the same trend looks to continue for this IPO as well. NHPC having issued shares at 36 is now ruling at 37. It may be worst for Oil India."

Sajeev Dhawan of JV Capital Services says "With the experience that investors have had in these two large initial public offerings (IPOs), why would you bother to invest with short-term. One should buy the stock if one is very patient but for the average investor, it is probably avoid. One might get it at cheaper price when it does list in the markets in a few weeks time."

Avinash Gorakshakar, Head of Research at Reliance Money said market sentiments would ofcourse impact the margin funding clients but if markets look up then there should be a good response from the market players to this quality IPO.