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RPL - Don't ever forget
| From : Geeta S at 09:26 AM - Jan 22, 2012 ( ) |
Share it on FacebookInsider trading in RPL - Have this in your mind.
In 2007, RELIANCE (RIL) sold shares it owned in Reliance Petroleum Limited (RPL) for 223 rupees.
The share eventually fell back to 70 in late 2008, and recovered to 130 levels when it was merged with RIL - 1 share of RIL for 16 of RPL, which translates to an RPL price of Rs. 112 (RIL is at 900, and had a 1:1 bonus after the merger). Sadly, at the time the merger price was effectively Rs. 60 per share of RPL or so, which is exactly equal to their IPO price in 2006.
RIL first sold RPL in the futures and then sold in the spot market while covering the shares sold in futures. This helped them to sell at the same levels even if the quantity they sold was huge.
And, poor retailers were misguided with a target of 1000 levels and were dumped with all that reliance sold at the highest levels.
Most of the retailers entered at the peak and booked losses. There are so many miserable stories of investors/traders behind this.
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