Reliance IPO receives grand response from Gujarat

Gujarat, which is considered to be the investment hub, welcomed Reliance Petroleum's (RPL) IPO overwhelmingly.

"It was good response and RPL organised roadshows in Vadodara on Thursday and will follow suit in Surat on Friday," said Jagdish Thakkar, leading stock broker of Vadodara.

In the roadshows, the organisers explained how the company will produce the gasoline, aviation fuel, diesel and other petroleum products.

Manoj Gandhi, an investor in Rajkot, said, "Why lose an opportunity of investing in the Reliance Group Company. The company's future is evident from yesterday's announcement of US Petro major Chevaron acquiring 5 per cent stake in this IPO."

It's pure gambling going the way reports are appearing in the market that Reliance IPO has already been over-subscribed and there are chances of it being over-subscribed by atleast 50 times.

There is a risk of losing an opportunity by filling application late as there are three holidays in a row, Gandhi added.

Usually, stock brokers and depository participants in the city are exempted from the ciesta stroke due to their operation timings and working hours which are in parity with the stock markets.

But for the first time investors from the city also exempted themselves and queued to fill their applications for Reliance Petroleum's IPO.

Moreover, on the first day generally we do not witness such rush of investors as seen in this IPO, said Narendra Tanna, Branch Head, Sharekhan in Rajkot.

"As there is no other IPO in the same time-frame, we feel investors do not want to miss on an opportunity and that's probably the reason that investors in Rajkot have also shown overwhelming response to the investment call from Reliance," explained Narendra Tanna, Branch Head, Sharekhan in Rajkot.

A similar response has been echoed in Ahmedabad. Kamal Gupta, manager, Business Development, Anand Rathi in Gujarat said the response in Ahmedabad and other cities of state has been very good for the much awaited IPO of Reliance Petroleum Limited.

He further said, "Even though the sensex is falling, subscribers have been flocking in huge numbers to invest in Reliance."