Advanced
Case Study: Reliance Power IPO, A Special Situations Failure
A forensic walk through India's most hyped IPO of the 2008 bull market: the market backdrop, the prospectus, the valuation of a company with almost no operating capacity, the subscription frenzy and IPO funding, the listing day collapse, the 3:5 bonus, the long decline that followed, and the SEBI reforms it helped trigger. Ends with a special situations checklist you can run on any hyped mainboard IPO.
Reliance PowerIPO AnalysisSpecial SituationsRed Herring Prospectus
MODULES
5
DURATION
~3 hrs
TRACK
Stock Market Basics
What You'll Master
Read a red herring prospectus the way an event driven investor does, starting with valuation and risk factors
Value a pre revenue project company and see what the issue price was really assuming
Understand how subscription multiples, IPO funding, and grey market premiums distort listing day prices
Calculate the real effect of a compensatory bonus issue on an IPO investor's cost
Run a repeatable special situations checklist on any hyped Indian IPO before you apply
Access Level
LEARNER
Everything included
Full Text Playbooks
Actionable Exercises
Mobile Reading Mode
Lifetime Updates
Curriculum Breakdown
The Setup: India in January 2008
3 LessonsReading the Offer Document
3 Lessons▶
Inside the Red Herring Prospectus: Issue Size, Price Band, Retail Discount, and Use of Proceeds14 min read
▶
Valuing a Company With Almost No Megawatts: The Project Pipeline Math Behind the Issue Price15 min read
▶
The Risk Factors Most Applicants Skipped: Fuel Supply, Execution, and Group Dependence13 min read