Acropetal Technologies Ltd IPO Message Board (Page 9)

Hi all,
For sbi bonds, I submitted the form yesterday and yesterday itself the cheque was realized, did the same happen to you guys as well ?

@ravi,banglore...karur vyasya bank offer 10.25% interest.

SBI collects Rs 6,000 cr on Day 1 of bond issue

The State Bank of India (SBI) collected Rs 6000 crore on the first day of the launch of its retail bond issue. The bank plans to raise Rs 10,000 crore through the issue. The bond has an issue size of Rs 1000 crore with a green shoe option of Rs 1000 crore. About 50 per cent of the issue is reserved for retail investors with a green-shoe option of Rs 10,000 crore.

The bonds offer an annual interest rate of 9.95 per cent for 15 years to retail investors and 9.75 for 10 years. The institutional investors will get a interest rate of 9.30 per cent of the ten year bonds and 9.45 per cent for the 15 year bonds. It will be listed on BSE and NSE and traded. The first tranche of the bonds that were launched in November 2010 are already trading at a premium of Rs 400 NSE.

Vineet Arora , head product and distribution, ICICI Securities, said, “SBI retail bond issue is a good investment opportunity for the retail investor as they are able to lock in at a higher rate of interest. There is also a lar-ge green-shoe option for the retail portion where they can go upto Rs 10,000 crore is also a big opportunity for a large number of investors. Though the returns are taxable, it depends on which tax bracket an investor falls into to determine the effective rate of interest.”

All investments upto

Rs 5,00,000 will be classified as retail while above Rs 5,00,000 to Rs 250 crore will be the high networth individual (HNI) category. Investments above this will be institutional investments. The bonds have a call option after 5 years for the 10-year bond issue and after 10 years for the 15- year bond.

Investors do not have a put option and will have to stay invested over the entire tenure of the bond issue. Unlike a bank deposit these bonds are capital instruments so they cannot be pledged to avail loans.

Only investors with a demat account can apply, but the applications are in the physical form. Only 126 branches of SBI out of the total branch network of 12000 branches are selected as the designated collection centres.

The first tranche of retail bond was first launched by SBI in November, 2010, it was oversubscribed 17 times and the bank had to prematurely close the issue due a flood of applicants. But this time the bond would be open for an entire week upto Februaru 28.

Dear Subramanian Nagarajan,

It may also be possible when u go for sell ur bond on listing day that time due to worse market condition u cant able to sell @ ur desire prise.Might be possible that very low volume cause every retail applicant rush for profit booking.

@111 Nis

Dear Nis,

I accept that we will not get higher returns like some of the IPOs. But I hope we will not loose anything on investing here. After the bad experience of some of the recent IPOs, people's expectation is not to loose their capital. Secondary market is also not predictible at this point of time (at least for the one month from now).

Here our capital is safe. 7% int. will be given from the closing date to the allotment date. I hope 4% int. will be given if we are not allotted. Moreover, they will give int. on April 2. So, definitely we will get a meagre premium on the listing day as well as on the coming days till April 2.

If any dispute in my point I request experts to clarify.

Dear GEM ipo,

Welcome back to the forum. We missed u a lot.

Dear friends

i am new member on board.

if any one is using icici direct please let me know is it possible to place stoploss in the preopen session of ipo/scrip to be listed.

regards.

chittorgarh staff,
why dont you open sbi bond in current IPO list to help retailer.it will be easier for people to read related messages at one place,instead at different ipo or stock message board.plz act immediately.
with regards

According to me SBI bonds will not give good return as expected.
Second thing,,,right now low volume in listed n1 and n2 series from secondary market.

SBI bond issue is still open...

It will surely give a very good returns, everyone will forget the IPOs..

Dont dare to touch current IPOs

SBI BOND SUBSCRIPTION FIGURES RETAIL 1674.5 CRORE, QIB 3068.63 CRORES, HNI 143.74 CRORE..........ENJOY LISTING GAINS

102. SkDash

There are few banks offering 9.5% interest rate on fixed deposits. However, they are offering this only for 1-3 year period (Eg: Indus Ind Bank). However, SBI bonds for retail investors (subscription of Rs10,000 to Rs5 lakh) is offering better rates of 9.75%-9.95% for 10 and 15 years respectively. The interest rates offered by SBI (deposit rates) for 5-10 years have been steady at 8.50%-8.75% for a long time. It is suitable for pensioners, middle-level government servants and tiny shop owners who don't even fall in the tax bracket.

Public sector banks, private banks and even cooperative banks are offering lower rates than SBI, for a fixed deposit (maximum rate of 9.25%). An investor looking for steady income without the hassles of fluctuating interest rate scenarios over the long term can benefit from the bond offering.

104. vas nat

1)You have no tax incentives in buying this bond. In addition, the interest that you earn every year is taxable.

Tax is payable on the interest in full - i.e. the interest gets added to your income. That will pull the net yield down. You can choose to buy and sell on the exchange between interest payments, but the profit is added to your income (as short term capital gain).

If you are in the highest tax bracket of 30.90%, the effective rate of return will come down by 30.90%. So the 15-year bond offering a return of 9.95% will give you just 6.88% effectively. Taking the same example a 10-year bond offering 9.75% will effectively return 6.74%. SBI bonds don’t offer any tax benefits and pay interest only once a year. TDS applicable before annual interest payments.

If SBI does not call the bonds after five years, investors will get 0.5% more return for the rest of the period of the bonds.

One should know, interest generated by infrastructure bonds is also taxable.

2) Mutual Funds (Balanced & Debt Funds) & SBI's subsidiary may provide liquidity support in the secondary market. NRIs, Overseas Corporates, FIIs are not allowed to apply & trade in secondary market.

3) The estimated listing gains are in the range of 2.5 ~ 3%.

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

If you look at Oct 2010 SBI bonds:

Series 1 (10 Years @ 9.25%) listed at 3% premium
Series 2 (15 Years @ 9.50%) listed at 5% premium

If alloted: You get interest till allotment date @ 7% p.a.
If not alloted: The money is returned with 4% p.a. interest

If you have excess money in your saving account this bond have good return opportunity with almost nil risk.

4) Yes. Everyone who wants these bonds should apply immediately. I believe first come first server is on a day basis.

In case any category is under subscribed the subscriptions received will be allocated first to the Retail Applicants; second to HNIs and then to the NII, Corporates and QIB categories. In case of over subscription, for the applications received on the day of oversubscription, preference will be given to Series 2 Lower Tier II Bonds on a first come first serve basis, and the balance, if any, will be allotted on a pro rata basis to Series 1 Lower Tier II Bonds.

Time of submission may be considered. Is time noted when applications are submitted? Or or will the allotment be done by lottery?
People who applied should inform.

shreedherji is it true sbi bond issue open in retail category up to 10000cr.

Chemcho Sir & SK Dash
SBI 9.5 bond closing rate today was 10420.Even if you calculate interest for 4 months from Oct 23(On which it was launched) till now It comes to 300.So 9.5 bond is trading at 1 percent premium.Now the difference between 9.25 & 9.5 is 200 . 9.95 is not a small interest rate .The Interest rates have peaked & hence it is an attractive rate.FIIs can buy the bonds post listing .

Thanks Ravi.

1) My auditor has clarified that the indexation benifit does not occur in this case. That means it equals to a FD in terms of taxation.

2) FIIs are not alllowed to apply as seen from the application. So where from the demand will arise in the present situation? Are the FIIs allowed to purchase in the market later on?

3) The attractive part appears to be the commission share from broker for applying, interest for the amount applied and the expected 2-3% listing gains.

4) Out of 1000 crores alloted for retail, I read from one of the boarders msg that SBI allows over-subscription upto 8000 crores on first come first serve basis. Is is correct?

Dear all- Pl give your views on the above 4 points.

will the interest part be taxed the while redemption.

I dont understand the logic for follwing widely SBI bond. AT present also some other banks are offering at around 9-9.5% for 1 yr, then whats the gain of sub for 15 yrs in SBI bond for getting 9.95% int ?

Another thing- listing gain will be very limited as we have seen in Oct issue. If you deduct interest portion for yr holding period, listing gain will be around 2-3% max for 4-5 months. Anyhow- all chitorgarh members quitted the IPO and following bonds. wish them all the best

SBI BONDS
ALL THE RETAIL INVESTORS WHO HAVE APPL[ED ON THE FIRST DAY WILL 100% ALLOTMENT AS THE BONDS HAVE ONLY SUBCRIBED TO 1000 CROES IN RETAIL
DO NOT SEE ANY PRIEMUM IN THIS BONDS AS WAS THE CASE OF THE BONDS ISSUED IN MONTH OF OCT 2010

WHAT's the subscription figures of SBI bonds after first day ?