08 Jan 08 Reliance Power IPO Payment Options Explained
Reliance Power IPO has two Payment Options. Lot of investors are wondering as to which payment option to choose while applying for the Reliance Power IPO. Now looking at the two Payment Options, first one allows retail investors and HNI’s to pay just Rs. 115 per share, if applying at the cap price or cut off price. The balance should be paid on call. This option is not new for investors. ICICI Bank FPO also had a similar option. Most investors (including me) took this part payment option only to get caught in the confusion later, regarding converting the partly paid shares to fully paid shares. While the share prices zoomed, I was unable to sell, because the partly paid shares where not listed then. Also there was no option to convert the partly paid shares tp fully paid shares until the bank called for the remaining amount. Many investors are afraid they might endure the same fate in the reliance power IPO if the payment option 1 is selected. Also, though likely, it is still not clear whether in case of oversubscription the amount paid will be adjusted and the shares converted to fully paid shares if the retail category subscribes by 4 times the IPO issue size.
By using the second option, investors who want to sell on listing day, can take the safer route and pay the full amount. This way post allotment confusion can be avoided completely. However, this method does not ensure the optimum use of investable funds. The best bet would be to wait till the last day and estimate the number of times retail category subscription and then take a decision. If the retail category is subscribed more than 4 times, then the payment option 1 would be the best option to apply in the Reliance Power IPO. This is assuming Reliance Power Limited announces that in case of oversubscription the amount paid will be adjusted and shares would be made fully paid.
Coming to the lot size and the maximum shares retail investors can apply, it has clearly been mentioned in the DRHP that the maximum retail investors can apply in the Reliance Power IPO is 225 shares after taking into account the 5% discount offered to retail investors. Investors can only apply for 225 shares, no matter what payment option they choose to apply in the Reliance Power IPO. Lot size of Reliance Power IPO has been fixed as 15 shares per lot. Reliance Power IPO is a very safe IPO to invest in. The risk of applying in the IPO is almost NIL. Hence investors are advised to grab this opportunity to make some risk free (almost) returns. As mentioned earlier, Reliance Power IPO would be fully covered in this blog. I’ll keep posting updates on Reliance Power IPO Subscription details, payment options and Reliance Power IPO Allotment details frequently. Hence do keep checking this blog often and keep your self abreast with the latest happenings regarding Reliance Power IPO.
Update – This is to confirm that incase the part payment option is selected and Reliance Power IPO subscribes over 4 times, no further amount needs to paid on allotment since the refund amount will be adjusted against the balance payment required on allotment. It looks highly likely that the retail category in reliance power IPO will subscribe by atleast 4 times. Hence investors are advised to use the payment option 1 (part payment option) to apply in the Reliance Power IPO.
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Query on : Reliance Power IPO Payment Options
Hello, Is there any difference in no of shares allotment with the two payment options? Do we get less shares for payment option of 25%?
Need Urgent reply. So that we can prepare.
Thanks in advance.
Regards
Hari
Hi,
if i have 2 demat account in my name. can i apply in both?
Regards
Arul
Hi Arul,
Yes u can invest through both accounts…
As per my knowledge u can open 5-7 accounts n apply for same..
regards,
Sachin
if one has more than 1 demat account can he apply throuh both account
i want 1000 share so how much apply share then i get 1000 share
if i purchased ipo on my friends account then is it possiible to transfer share in my demat account
i want invest reliance power ipo please send details about the reliance power ipo to my mail id
thanking you
k.vinaayakkshatriyan
If i apply for 225 shares of reliance power @ of 450 it amounts to rs 101250, so i want to know that it is exceeding rs 100000 so is there any chance of my application being rejected.I am opting for partial payment method.Please reply.
Pawankumar, you can get the shares transferred to your account easily. All you need to do is get a demat cheque from the bank from where you are getting it transferred and submit it to your demat bank ( of course with some commission ). However, I would request that he sells the shares and transfers the money to you and you buy it back.
-Shrinidhi
hi
if i want finance relaince power ipo .this is possible or not.plz reply me
I have found it impossible to subscribe to Reliance Power IPO in Europe.
Can I purchase the shares after launch to keep as a longterm investment through a European broker and if so who?
I look forward to your reply.
Many thanks
anyone cannot applyforipo in more than one dmat account in the same name. allotment is not affected by choosing anyoption. it is depends on oversubscription of issue
it is possible to transfer shares to other account after listing by regular way.
hi good information on RPl
how much discount i will get for 225 shares and what is the ammount on options1
Dear Sir,
I am heavy invester for 2000 IPO’s for Reliance Power.
Please give the advise i have not any dmat account.
Regards,
Lokesh
hi,
if i want 500 share then, how many share we can apply. & what is the limit for the one demat account
I Could’t understand two payment options
Please make me know about that..
amount ketli thay second option ane first option
mo discount cut karine cheque lakhavano?
Hi,
I have one querry, In case if i apply for more shares by partial payment, once it is alloted all shares can i cacel soem of the share which have been alloted
I want to know whether applicant making full payment gets preference during allotment over applicants making part payment for Peliance Power IPO
D. Banerjee
I want to know whether applicant making full payment gets preference during allotment over applicants making part payment for Reliance Power IPO
D. Banerjee
Dear Bullish Indian,
I intend to invest for 225 shares? i wish to know what price should i quote , whether Rs 450 or Rs 430(if i am choosing option 2), because the bid cum application form mentions about a discount of Rs 20.Please confirm urgently as the IPO starts tomorrow and ends by this week.
how can i apply for more than 225 shares from single demat a/c? my broker says me if i pay full amount at the time of application in that case i can apply for more than 225 shares is that true?
if i never take this 5% discount can i apply for more than 225 shares?
i have two demat accounts in my name can i apply in both account
I want to buy the shares of Reliance Power. Where I can get the application form and How can I start. Please advice. I am staying in PUNE.
thanks,
Kirtika
i dont have the gmat a/c so what should i do to apply.pls tell me..
If you want problem free shares to sell on first day then pay full amount and no problems of part payment issues……and mental harassments
Could anyone explain this?
“Only one application is allowed per Match Account.”
I found this on ICICI website while applying for Reliance Power IPO shares.
can i purchase share online??
I have a demat a/c for which i have given the details of IDBI bank . Can i issue a cheque of any other bank while appyling for the IPO.
Hi Bullish,
This is from the RHP page 49.
“In the event the Issue under the retail category is oversubscribed by 4 or more times as explained in the Illustration 4
and Illustration 5 in the table above, no further amount will be payable on allotment. Excess amount after adjusting
the full amount payable for the shares allotted will be refunded”
So in case the retail category is oversubscribed more than 4 times, only fully paid shares will be issued.
hi
I would like to be informed on the minimum number of shares one can apply for Reliance Power.
Hi,
In sharekhan.com you can apply for IPO and there is something called as second applicant. Just wanted to know whether I can apply( 1 Lakh each) for my brother and not cross over to the Non Institutional Investor group as I believe chances of getting alloted in Non Institutional section is less. Thanks a lot
Thanks
Abhinay,
Thats good work. Its the info that is not published any where atleast I didnt find.
@Abhinav – That’s good news. Thanks for sharing. It looks highly likely that the retail category in reliance power IPO will subscribe by 4 atleast times.
Hi
You can apply from more than one account for an IPO but U will be allocated share in only one account as at the time of allocating share they allocate share using your pan card which is unique for a person.so a person can apply from only 1 demat account
Pankaj Jain
Hii all
Can u plz answer question number 20 I hv the same exact query … kind enuf to share ???
Hi padak (q 20 ) if u hv already found an answer for that plz mail to niranjan.fl@gmail.com thnks
I would like to be informed on the minimum number of shares one can apply for Reliance Power.
I want to invest for reliance power ipo but i dont have pan card(student)so is it no problem.
secondly i want to know how will i get profit can u tell me little detail.
Is it possible to buy IPO under both retail and non-institutional category?
Hi
I had applied for reliance IPO on retails option but by mistake my bank returned the cheque payment. I am in deep shock i dont want to lose the opportunity is there any way to solve the issue ? whom do i contact ? i am want to make the payment
This is very urgent reply soon
I have purchased 3 time , and 15 Shares are allocated to me , i have to Pay remaining 1200.
How much time can I get after Allocation and Listing.
sir/madam,
I get 15 share of Reliance Power but Till Now my payment was not deducted from my bank account. so what can i do now
please help me
regards
sauchand dhaker
The allotment procedures for Reliance Power Limited seems to be in mess. I have been alloted 17 shares against bid of 225 shares, but the shares are not yet credited to my demat accounts. The balance application money is also not credited to my account till date. It is sheer nonsense to talk about listing gains to small investors like me. Horrible companay with horrible management