Acropetal Technologies Ltd IPO Message Board (Page 10)

Mr Ken Shah. This information from a very reliable source. further you want information or you want source.

tower from where u got this info

SUBSCRIPTION OF BONDS
QIB 143 CRORE ONLY

HNI 300 CRORE ONLY

RETAIL 1067 CRORE ONLY

86. vas nat

Allocation will be on "first come first serve" basis. Anyone who wants these bonds should apply at the earliest.

There are no tax benefits for these bonds.

SBI's subsidiary may provide liquidity support in the secondary market for these bonds.

This is a golden opportunity to lock-in 10% rate for at least 10 years (There is a call option after a period of 10 years).

Keep in mind that these are Tier-II bonds and carry slightly higher risk compared to fixed deposits with SBI.

In my opinion, these bonds also a good option for those who want to stay invested for 3-4 years. Indian interest rates are comparatively high, both compared to historical rates and compared to interest rates in other parts of the world. It is unlikely that interest rates will remain at current levels for an extended period. In the long-term, interest rates should go down. Once interest rates start going down, bonds with longer tenures will see greater price appreciation.

As far as I know, the procedure for applying for these bonds is similar to the procedure for applying for equity IPOs. Investors can apply at any branch and use any check book that you want. The interest will be credited to the account linked with your demat account. You have to specify the demat account while filling the form.

Please correct me if any of the above points is incorrect.

If you sell just before the bond goes ex, the price that you get, will be roughly 9%-9.5% above the face value of the bond. Instead of "interest income", you will get a "capital gain". The price of the bond will fall approximately 9%-9.5% on the ex-date.

One can sell it listing day onwards. There is no lock-in period. Who ever will hold at the time ex-date every year, will get the interest. Who ever will hold at the time of maturity, will get the principle. Bonds: Fixed maturity, Certain Interest. IPO: No guarantee.

Liquidity is an issue, but not for retail investors who want to invest 1-2 lac. If bondholder keeps a sell order open for 2-3 days, he should be able to exit the bond at fair value.

I doubt these bonds will give an significant listing gains. There isn't much difference between the market rates and yield of the bond. This bond is good only for those who want to lock-in interest rates for the long-term.

http://ak57.in/bonds/state-bank-of-india/3744/

As per the calculations in the below article, the estimated listing gains are in the range of 2.5 ~ 3%. An interesting point made in the article is that the series 1 9.25%/10yr bond is now trading at a discount.

SBI BONDS REMIAN UNDERSUBSCRIBED ON FIRST DAY. SO DONT WOORY APPLY NOW.PREMIUM WILL BE REDUCED.

Rs. 5 Lac Application of SBI Bond Jumped to Rs. 14000/15000.

Does any body know the present retails subscription figures of SBI bonds , and todays premium of of Rs 100000/- , if any body has idea then please share it

http://www.hdfcsec.com/research/ResearchDetails.aspx?report_id=2974882
HDFC research report. I am taking a plunge into this.

Welcome back Gem.

Hope to see you with more analysis of both IPO and sec market from now.

Gane.

thinking about tata steel shares alloted for rs. 6 lacs +

hi friends

i m back from a longgggggggg journey ...........

happy to join u all.....

In a first, the retail bond issue of the country’s largest bank, State Bank of India (SBI), is a hit in the grey market. Brokers in Ahmedabad, Mumbai, Delhi and other major cities are paying a premium to retail investors for applying on their behalf.

In grey market transactions, a retail investor acts as a front for a broker and purchases securities on his behalf. On the day of listing, the investor sells the securities and gives the broker the entire amount. In SBI’s case, the brokers are mainly dealing with their regular clients.

The premium being offered to retail investors, say market players, is Rs 320 per bond. Each bond has a face value of Rs 10,000. The brokers are offering up to Rs 16,000 per application of Rs 5,00,000 (maximum subscription amount).

It is a win-win for both the applicant and the broker, says a Mumbai-based trader.

“For a retail investor, it’s a risk-fee return of 3.2 per cent in 15 days. When calculated on an annual basis, the return is over 76 per cent. The brokers are taking a risk assuming the bonds will list at a premium of Rs 400,” he said.

The Rs 400 figure has been arrived on the basis of SBI’s first set of retail bonds. With a 9.5 per cent coupon rate for 15 years, the bonds are trading at a premium of Rs 400 to their face value of Rs 10,000 on the National Stock Exchange. The issue was launched last year.

The brokers believe the latest bonds, with a coupon rate of 9.95 per cent for retail investors, will list at over Rs 400. In fact, they expect the listing price to be much higher, as the previous issue was listed at a premium of Rs 600.

“There is good money to be made even if the bonds are sold at an average premium of Rs 380. Considering that the broker will pay Rs 16,000 per application of Rs 50,000, the premium paid for acquiring a bond (with a face value of Rs 10,000) is Rs 320,” said another South Mumbai-based broker.

There are over 80,000 sub-brokers in the country and over 10.05 million demat accounts. The brokers are keen to play this game as they are being offered 1-1.25 per cent commission on each retail application they bring.

SBI's previous issue was subscribed over 20 times. The markets are expecting a repeat performance.

The issue opened on Monday and will close on February 28.

Hey shreedhar
Help me dear
Lot of buzz on sbi bonds
Dont know how to apply
Can I apply tomorrow also( first come first serve basis)
Is it as similar to applying for an ipo.
Kindly help buddy

Dear Bangalore King,

Pl read Page 4 of the Application, Middle Column, 8th line and the centre.

Quote

" FIIs,NRIs and OCBs are not permitted to apply in this Tranche 1 Issue"

"Applications cannot be made by a) ... b)...c)...d) FIIs e).."

Sreedhar,Ravi,Bangalore - Pl comment

Can the FIIs atleast trade the bonds later?

can v ruch to invest in SBI BOND on tuesday???/

why chittorgarh not making page of SBI Bond?

sreedhar,
whether we may apply for sbi bond on tuesday or it is closed for retailer on monday.if yes should we go for it or not.plz also reply about listing date of sbi bond
with regards

Thunderteen,
Apply for 15 yr 9.95 bond

Dear Sreedhar
your expert opinion has really been helping many of us here.Wanted ur advice on the choice of tenure.If both the sbi bonds are going to be listed and traded,then anytime 9.95%,15 years tenure bond should be more profitable?i want to exit within a month.with that outlook which one i should go for?Thanks.

NEW DELHI: The Supreme Court today dismissed the petition of two people involved in IPOs fraud -- Dushyant Dalal and Puloma Dalal -- who challenged the order of market regulator Sebi that imposed Rs 6 crore fine on them.

A three-judge bench, headed by Chief Justice S H Kapadia, dismissed the petition filed by Dalals after observing that they have made unlawful gains by cornering shares of the IPO and that Sebi rightly imposed penalty on them.

"You have made a profit of Rs 4 crore. What kind of transaction is in it. No one knows the value of it," said the bench rejecting the plea of Dalals that their IPO transaction was genuine.

On July 22, 2009, Securities and Exchange Board of India (Sebi) had imposed a penalty of Rs 6 crore for irregularities in various Initial Public Offerings (IPOs) by Dalals and said that if they failed to do so, they would be debarred from trading in stock markets for seven years.

After analysing IPOs of various companies between 2002 and 2005, Sebi found that certain brokers had opened Demat accounts in fictitious names and through them cornered large number of shares of several companies in violation of norms.

Later, these brokers transferred the shares from these accounts to Dalals -- the husband-wife duo who acted as financiers and sold stocks on listing days, making huge profits.

Dalals, who were Chartered Accountants, had financed two operators, Budhwani and Sugdh, and cornered shares of 10 IPOs - Shoppers Stop, Suzlon Energy , IL&FS, IDFC , Sasken Communications, MSP Steel, FCS Software, Provogue , Gteway Districtpark and Nectar Lifescience.

After findings, Sebi issued notices to them seeking explanations about their unlawful earning of Rs 4.94 crore. Later, Sebi imposed a penalty on them.

Sebi move was challenged by Dalals before the Securities Appellate Tribunal, which also rejected their appeal on November 11, 2010.

Following it, Dalals had approached the Supreme Court.

Dear vas nat,

QIB is qualified institutional buyers which includes Foreign Institutional Investors (FIIs).