Reliance Group IPOs and Market Falls – interesting study!
11th September 2026
Reliance Group IPOs and Market Falls – interesting study!
Dear Fellow Investors,
Jai Hind! “Hanuman Ansh” Movie is doing very well. Today is a special day to remember Maharaj ji, as he left his physical body at 1.15am on 11th September 1973. I offer my pranaam to him.
I have been watching the market since 1992. The most interesting things were the Reliance Group IPOs and market performance. Their issues were so oversubscribed that market money was pulled out to finance them.
Let me share.
September 1992:- RPPL issue size was Rs. 650– 800 Crs. It was oversubscribed by 106 times. RPEL was oversubscribed by 90 times. So, total Rs.70000 crs demand was generated.
BSE market cap of all companies was around Rs.1.80 lakhs crore to Rs.2.10 lakhs crore.
Rs.70000 was 30%!!
Sensex was 3400 in September 1992, and it fell to 2400 in November 1992. In those days, it used to take 60 to 90 days from issue to listing!!
April 2006: - Reliance Petroleum issue was for Rs. 8100 Crores. BSE market cap was Rs.32 lakh crore. The issue got oversubscribed 52 times, generating demand of Rs.1.43 lakh crore, about 5% of the market cap.
The shares were issued at Rs.60 and listed at Rs.102. Massive unwinding of positions led the market to hit the lower circuit.
The May 2006 Core Crash: The broader Indian market entered a multi-week freefall almost immediately after RPL listed. Highly leveraged positions in the futures and options (F&M) segment led to massive margin calls. Brokers were forced to square off large portfolios, causing consecutive days when multiple high-profile stocks across the exchange hit their lower circuit.
January 2008: -
Reliance Power ( Anil Ambani Company) came with a Rs.11563 Crores ipo. It generated Rs. 7,50,000 Crore demand. BSE capitalisation was Rs.70 lakh crore, so 10% of the market cap.
Reliance power issue was over on 18th January, and the market fell to lower circuit on 22ndJanuary 2008.
Of course, the market had many other reasons to fall but the Reliance ipo has played an important role in sucking the market liquidity in a major way.
What about the current times?
In 1992 – Rs.800 Crore IPO was a big amount. In 2006, Rs. 8100 Crore was a big amount. In 2008, Rs.11500 Crore was a big amount. In 2026, Rs. 37000 crore is the biggest IPO amount in the history of India.
We have an NSE IPO of Rs.22500 Cr something also this month.
BSE market cap is Rs.486 lakh crore. If Reliance JIO generates just 10 times oversubscription, it will be close to Rs.4 lakh crore. Approx 1% of market cap money is out of the market for 5 days.
This can trigger massive unwinding in the market before the market recovers. According to current information, the issue is planned for the end of October and the first half of November.
Other reasons for the fall could be – Midterm poll in the USA / Interest rate decisions by the FED / Oil prices.
What is the HISTORY of the Sensex since 1992?
Sensex made a new high in 1994. After the 2006 fall, the Sensex made a new high in January 2008 before falling later. Sensex was 19000 on 18th January 2008, and it fell to 7697 in October 2008. But it was 15670 in July 2009.
In those days, we used to send SMS. On 5th December 2008 – we had send message when the Sensex was around 8000. Our target was 14000 by July 2009. The market was well above our target.
The point is – if at all the market falls as per the previous track record of the Reliance group IPOs – use the fall to buy fundamentally good stocks.
What NEXT?
Today is the last day of the auspicious SHRAVAN month. Many clients took our inputs for their personal destiny and carried out the remedies during this auspicious period. Now, Ganesh Ji will come. Take action to deal with your teething issues when cosmic energy is at its peak.
All the best.
Follow me on Twitter @hiteshmparikh / WhatsApp - +91-9869425399.
Learn a Lesson. Live with Passion & Invest with Reason.
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