Sensex's 306 point fall a day before RPL IPO

Mumbai, Apr 12 (UNI) The biggest fall on the stocks markets today since May 17, 2004 by 306 points, on the sensitive index(Sensex) of the Bombay Stock Exchange(BSE) came just before Reliance Petroleum Limited's(RPL) initial public offer(IPO) opening tomorrow.

While the foreign institutional investors (FII) selling in the last week seemed to have triggered today's big fall in the stock markets, it could be that some selling was prompted by the RPL's IPO opening tomorrw as investors cornered all their money to invest in the RPL IPO opening tomorrow morning.

It is quite likely that RPL IPO will be subscribed soon after opening.

''The markets also fell today as investors got ready to invest in the Reliance Petroleum Limited's IPO which opens tomorrow,'' said a leading BSE broker.

FII, mutual funds, traders and retail investors all seemed to have sold especially in Reliance pack today to make way for RPL's IPO opening tomorrow, the broker added.

Reliance Industries, the flagship company of the Mukesh Ambani owned Reliance group closed down by Rs 7.50 at Rs 828.75.

RPL is entering the capital markets with a public issue of 135 crore equity shares of Rs 10 each for cash at a premium. The price band has been set at Rs 57 to Rs 62 per share.

The net size of the IPO available to the public is 45 crore shares. Of which, 60 per cent being reserved for proportionate allotment to qualified institutional buyers and another 10 per cent for allotment to non-institutional buyers and the balance 30 per cent will be allotted to retail individual bidders.

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