Reliance Power, a subsidairy of Reliance Energy, was listed at Rs 548 - a premium of 21.7% to its issue price of Rs 450 - on the Bombay Stock Exchange (BSE).
The stock hit a high of Rs 600 and dropped to a low of Rs 355 in late trades.
The stock finally ended at Rs 372 - a discount of Rs 78. The weighted average price on the BSE was Rs 413, and around 6.38 crore shares changed hands on the exchange.
On the NSE, the stock was listed at Rs 530, and closed at Rs 372 on hefty volumes of around 13.40 crore shares.
The IPO was subscribed approximately 70 times and attracted over five million bids from all categories of investors with an aggregate commitment of over Rs 7,50,000 crore as against the issue size of Rs 11,560 crore.
"The listing basically shows that one stock can not lift sentiment irrespective of whatever quarter it comes from unless investors see value in them," said Pankaj Namdharni, head, equities, SPA Securities.
"The future of IPOs will depend on the valuation at which promoters decide to sell the issue and the value investors see in a stock. For instance, there is significan upside in REC," said Namdharni.
Adds Gaurang Shah of Geojit: "I was sceptical at the valuation from the beginning and my fears came true. Those who bought the shares at high interest are selling them at whatever prices they can get. There is no buying interest from any quarter, either retail or institutions, which is why the stock is falling," Shah said.
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