Acropetal Technologies Ltd IPO Message Board (Page 7)

MUMBAI: Retail investors who have not yet invested in State Bank of India's high yield bonds continue to have a chance to get an allotment. Total retail subscriptions until Thursday were below Rs 4,000 crore. The issue will close for subscription on February 28.

The bank, while launching its retail bonds, had said that although the target was to raise Rs 2,000 crore, the bank would retain subscription up to an overall Rs 10,000 crore provided the oversubscription came from retail investors. The bond issue which opened on Monday offers differential rates for retail and institutional investors. While retail investors get 9.75% and 9.95% on 10-year and 15-year bonds respectively, institutional investors will get only 9.3% and 9.45%.

According to sources, the total retail subscription as on Thursday was Rs 3,897 crore, while the total bids from institutional and high net worth investors was also more than three and half times. However, since priority was to be given to retail investors it is likely that the total allotment to institutional and high net worth category would be limited to Rs 1,000 crore.

The long-term bonds sold by SBI in August continue to be traded at a premium despite the yield being much lower than the return offered under the current issue. According to investment bankers, this is an indication that the market expects demand to outstrip supply of these bonds.. "SBI's decision to restrict investment by high networth individuals and corporates would ensure that there is a latent demand for the bond even if retail demand is fulfilled.

This would ensure that there is a good secondary market demand for the bonds," said an investment banker. It is not clear what the impact of the crash in equity markets will be on the bond issue. However, in the past SBI has gained whenever there has been a "flight to safety".

152 blue jay
yes i agree with you i have invested rs 2 lakhs
but as the premium is which my freinds are quoting at rs 3500 to 5000 on investment of rs 5 lakhs is not true and those people who have invested for listing gains will not get much money maximum rs 500 to rs 1000 for 5 lakhs investment (as limit per person is 5 lakhs in this bonds )
this time the bonds have simple interest while oct 2010 series had compound interest also sbi is going to come with the bonds every 3 months as the need funds interest rate have been will be hiked buy .5% by the RBI if govt wants to control inflation

i applied through "bajaj capital"......
they directly offered 0.75%,i could have bargained for more,but i did not......
there are many brokers accepting forms andpaying incentives

Mumbai, Feb 24 (PTI) State Bank of India''s Rs 2,000 crore bond has been oversubscribed more than 4 times by investors as on the fourth day of the issue.
SBI has received subscriptions of around Rs 9,000-crore for the bond issue, of which retail investor demand is worth about Rs 3,897 crore, sources said.
Yesterday, SBI Chairman O P Bhatt had said he expects total subscriptions to touch Rs 10,000-crore by February 28, when the issue closes.
"We have decided to come out with one such issue every quarter. We will increase the branches from next quarter onwards," he had said.

GEM IPO FINDER,
Thru whom did you apply?
I had read that SBI is taking the applications directly and not thru any intermediary....

RAJA RAJASTHANI

chances are more that u will get allotment even i applied today...

yes these bonds will be traded like equity but there is no risk like equity in my opinion one cant loose in bonds in relative term, suppose u bought on listing @ 10300 so it will definetely cross 10300 in next few months because interest will be accumulated in the price of bond...

u cant see subscription figures its only the news paper ortv shows at the end ofeach day, allotment will be known through letter from sbi or ur deemat...

yes u will get interest for escrow a/c @ 7% p.a for alotte and 4% for non-allotee

rkg

u can ask for 1% commission in infra bonds eligible for tax saving...

in sbi i got 0.75% incentive/commission only for applying in the issue...

so on 5 lac application i got Rs. 3750/- and looking at the grey market premium another Rs.16000/- per 5 lac application is also possible......

so i m hoping for profit of Rs.20000/5lac application

GEM IPO FINDER--------pl. tell me the amount of commission to be expected for appln. in tax saving infra bond.

Dear SJ, Sridhar, Gem and friends,

I applied in sbi bonds 2011 today.

Is there any chances for allotment.
Kindly advise.
whether these bonds will be traded like equity.
where can we see subscription figure and allotment status.
with regards.
In addition to this I request Chittorgarh team to start one page on SBI BOND 2011…

R.K.Laddha

Chem Cho - Despite the news that SBI plans to retain oversubscription upto 10,000 crs, the SBI 9.5% bonds closed higher on the NSE today at 10,500 indicating a premium of 2%. If FD 10% interst rate was so attractive, people would have moved out of these bonds and into FDs. The reason that these bonds are more attractive than FD's is - liquidity. You can sell anytime, collect the interest and premium and move into any other investment. You cannot do that with an FD without being penalized.

SBI BONDS
I AGAIN INFORM THAT SBI BONDS WILL NOT HAVE PREMIUM AS ANTICIBATED BY MY FREINDS THIS TIME EVERY BODY IN RETAIL IS GOING TO GET BONDS AS ISSUE IS BIG PL READ THE PROSPECTUS FOR RETAINTION OF EXESS SUBCRIBTION
LAST TIME BONDS HAD NO EXESS RETENTION OF MONEY ALSO RATE OF INTEREST WAS LOW IN OCT 2010 TODAY SENIOR CITIZENS ARE GETTING ABOUT 10% INTEREST IN BANKS
HENCE THERE IS LESS DEMAND ALSO THEY HAVE ALREADY INVESTED IN OCT 2010

SENSEX DOWN 600 POINTS AND NIFTY 188 POINTS AT 3.18 PM

BAD NEWS FOR STOCK MARKET AND ALL MUTUAL FUNDS WILL BE CRYING
FIND OUT NAV OF MUTUAL FUNDS AS ON FEB 2011 AND 24 FEB IN MONTH OF MARCH 2011
IT IS RIGHT TIME TO INVEST IN STOCK MARKET CREATE YOU OWN NAV BY INVESTING IN GOOD NIFTY FITY STOCKS YOUR NAV WILL BEAT INFLATION BUT MUTUAL FUNDS NAV WILL BEAT YOUR DREAMS
SELL WHEN NIFTY REACHES 6000 ANY TIME IN 2011 BUT MONEY IN FD AND WAIT FOR NIFTY TO AGAIN COME TO 5450 TO 5350
TRY YOUR LUCK BY INVESTING MONEY IN STOCK MARKET AT 5275 INDEX MAXIMUM DOWN SIDE 100 POINT IN NIFTY

ACCORDING TO ME
NOW I HAVE FEAR ABOUT SBI BONDS ISSUE
LOT OF PEOPLE SUBMITTED AND DEFINITELY THEY ALL WILL COME FOR SELL ON LISTING,,,,,NO RETAIL INVESTOR WOULD LIKE TO BLOCK SUCH A HUGE AMOUNT FOR LONG PERIOD WHEN THEY ARE ABLE TO EARN MUCH FROM MARKET.
HAVE A LITTLE FEAR AND ALSOOOOOOOO
MIGHT BE LOW VOLUME ON BONDS IN SECONDARY MARKET DUE TO MARKET CONDITION.

DEKHTE HE KYA HOTA HE.
LET'S SEE.

Do not worry about TDS on SBI BONDS as they are in dematerialised form and will be listed on nse.

17 times !!!



The bond issue of India's lagest bank State Bank of India (SBI) has been subscribed 17 times on the back of overwhelming response from investors.

CNBC-TV18’s Managing Editor Udayan Mukherjee is not at all surprised by the overwhelming response. “I think the flavour of the market right now is fixed maturity plans,” he adds.

Here is a verbatim transcript of Udayan Mukherjee’s comments on CNBC-TV18. Also watch the accompanying video.

I am not surprised at all. When you get SBI bond in this kind of a market environment at that kind of coupon rate for so many years, I think high networth individuals (HNIs) would want to lock in money at that kind of rate. I think the flavour of the market right now is fixed maturity plans. Equity markets are too volatile. HNIs are saying I can get maybe tax adjusted 9.5-10% on FMPs, State Bank is giving nearly double digit returns for so many years locked in, I need to put some money out there. So, I am not surprised at all that HNIs have found the SBI bond issue very attractive.

SBI, I think that holds the key to the market from here. We are getting close to a budget, if there is something about the fiscal deficit or the government’s borrowing programme, which the market does not like, you will see the impact on the bond prices, yields and consequently you might see pressure on the banks. This rally from 5,200 has been led by outperformance in the bank Nifty. That was the first sector to bring the market down in November, that was a sector which led the pullback rally in the first place.

If that begins to sell off now because of inflation and interest rate and bond market fears or macro concerns surrounding around oil then this market will struggle a lot to hold on to that 5,400 level. So, between now and post budget movement, if State Bank of India is not trading at Rs 2,600 plus then 5,400 will be very difficult to defend for the Nifty. Conversely, if those stocks tend to be constructive then this market probably manages to hold 5,400.

i m getting 0.75% commission on SBI BOND

so for 5 lacs application commission is 3750....

what other frends are getting......

i m not too sure about the exit option at listing day at one's own price there may be lot more seller, because this time there are lot more flippers who will exit on listing.....

any concrete view about this issue whether to leave or what?

@Dinesh Singh,

Thanks for the info. I thought 20K is the tax cap one could use it but one can invest how much ever they want it.

Gane.

@Gane

Power finance corp bonds are Infrastructure bonds and it is Tax Saving bonds U/S 80 CCF and maximum amount you can invest is Rs. 20,000.

MUMBAI: The State Bank of India's retail bond issue has been oversubscribed three times within two days of its opening. The country's largest bank mobilised about 6,000 crore, but a huge portion has been subscribed by non-retail investors such as qualified institutional investors, corporates and high net worth individuals.

SBI chairman OP Bhatt said he expected a total subscription of around 10,000 crore by the time the issue closes on Monday. The SBI bond issue, which opened this Monday, aims to raise 1,000 crore with a greenshoe option of another 1,000 crore. The bank has decided to accept oversubscription from retail investors up to 10,000 crore.

Mr Bhatt, who was speaking at the sidelines of an ICRIER seminar, expressed regrets about the bonds not having a wider reach. "I am aware that a lot of investors have not been able to apply for these bonds and I am very sorry about it. We will make sure we have increased branch coverage for the next issue."

The issue has come under criticism for its lack of reach this time, with only 126 of its branches offering the bond applications, which accounts for less than 1% of its total number of 14,000 branches. Further, since these applications are available only in physical form, access to them has become even more difficult. Investors subscribing to the issue need to have dematerialised accounts.

While launching the bond issue, Mr Bhatt was confident that the bonds would be oversubscribed in the very first hour of the opening. "Our last issue was oversubscribed 19 times mainly because of our brand and attractive pricing," he added.

The issue comes with two options - 10-year bonds with a coupon of 9.75% and 15-year bonds at 9.95%. The 10-year paper has a call option after five years and it would pay only 9.30% for non-retail participants. The 15-year paper has a call option after 10 years and offers 9.45% for non-retail investors.

Mr Bhatt has been very confident of not only the success of the bank's latest bond issue in terms of the amount it raises, but also of deploying the funds.

At the seminar, he dwelt on Indo-Japanese trade prospects, saying he was for foreign banks coming to India as that made Indian banks more competitive. The SBI chairman said the bank would be more than happy to set up mid-corporate branches in Japan to cater to corporates exclusively.

Mr Bhatt denied reports of the bank making demands for a blanket permission for mergers with other subsidiaries to the Parliamentary Standing Committee on Tuesday. He said the report emanated from 'Parliamentary quarters' and he did not have much say in it.

is there any interest in power finance bonds like SBI Bonds?

can v sell it in grey market like SBI Bonds?