I am putting one application. My personal belief is if Nifty cracks 5350, then bearish sentiment sets-in and it could affect IPO / FPO performance on browses.
Short-term investors should be willing to brave uncertainty to reap benefit. However, do not hesitate to book loss if cracks issue price- not only for this IPO, but also for any given IPOs.
If it breaks issue price, there are three scenarios-
1. Breaching issue price & staying there, 2. Breaching issue price & then recover to cost & 3. Breaching issue price & then plunging to new lows.
Most likely scenario is point no. 3 in 7 out of 10 cases.
if monsoon is good u mean to say itc...and hul will not be benificiary in rural markets..who have n no of times better..peetration than bajaj...and they have to make huge capex in distribution to penetrate in rural market...like itc and hul are affording
@IPO Expert...
Rahul bajaj group is good this is other Bajaj
have u seen birla group...aditya birla is the only guy whu is strong....yash birla group is a dud,...
I like the healthy discussion in this board...unlike SKS board....where there were stupid baseless arguments and personal attacks...keep up the good work guys..:-)
yesterday i heard interview of bajaj corp...direcor...who said 30% margin...was enjoyed when raw material cost was all time low....ang going forward since raw maerial cost esp crude prices have increased.....so margins will be under pressure......
GMP have only relevance only if is negative. GMP is only the breath and not the valuation. As breath for Bajaj Corp is positive, hence you may consider to subscribe to it ...
so apply in full load very good issue Bajaj is a well known wealth creator group they are not cheater also the valuations are quite attractive apply in full load enjoy!!!
I am new to investing in IPO. If the issue price to 660, I can apply for a maximum of 150 shares only right? Will I be able to apply more than 150 shares through one application?
You have put a valid apprehension. I would like to reply on your conceren that as per my view. As a long term startegy neither of the FMCG major love to have 100 brands in its kit ( we have seen Dabur). Initially they started launching brands with bigger margins and later on due to competion margin goes this than they may either sell their barnd like HUL generally go, Milkmade, dalda brands, savlon. Or for some brands they need to run business as a maintainence cost to an Brand and also putting R&D to re-emerge with new tecahnology to lower cost.
I believe Bajaj has started well with good margin business, it will help him well to negotiate for other lauches and distribution channels. They will only enter into high margin business and wont do public-seva by acquiring thin margin FMCG businesses.
Above is my perception, which may not hold goods hence, I request investors to invest only after their satisfaction and after accessing risk involved in the issue.
You mean to say ITC anh HUL and P&G who have 100 products in their portfolio they have no potential.....and a company with just one prduct has tremendous poptential..?
If ITC HUL with so many products underperform markets....why will bajaj corp...?
Isnt there poducts price...inelastic......tommorow if soap prices increase will u stop using the soap you are used to....?
And anchor investors have 30 day time period and then they can sell...so since anchor has invested doesnt mean...that it is long term prospect...?....
It do makes sense to apply in Bajaj Corp, after reviewing all the view from both sides. Company seems to have started well and based on solid foundation chances seems sound for future growth of this company. Bajaj brand value, back up from bajaj family, young energy and vision and a good start are good enogh reason to employ Mr Shishir as MD of a company we would be owning after closure of issue. As far as product marekt is concerned, hair care oil segment need to be tapped after shampoos, we all nows days for margin and growth in shampoo business has gone. All FMCG major Marico etc are using Oil as growth driver. I believe it should quote and stable 945.
FALLING GMPS OF SKS AND BCORP IS A COUSE OF CONCERN. ON THE OTHER HAND EIL IS HOLDING STRONG, EVEN IF IT HOLDS 300 AT LISTING IT WILL BE BETTER THAN SKS AND BCORP.
BUT GMPS IS NOT THE CORRECT INDCTN. OF LISTING PRICE, IT MAY CHANGE SIGNIFICANTELY, GMP ONLY SHOWS HNI AND RETAIL ACTIVITY, BUT QIB ACTION ON LISTING DAY MAY CHANGE THE GAME AND THAT IS THE GENERAL TREND.
Thanks to all the participants for high quality debate and detailed analysis. I believe this issue can give some listing gains. However overall return would be low, consider the large expected subscription, and consequently low allotment and modest listing gains. In the long term this company will give good returns if the new brands are successful. At this stage there is no way to determine this, apart from your trust in promoters. It will be quite difficult to establish the brand as hair oils are passé and do nothing for most common type of hair loss – androgenic alopecia. The most common treatment for this is minoxidil, that is out of patent and is manufactured by many companies. However, if the company is not successful in establishing the brand, the stockholders hair will start to fall out, and they can become the most loyal customers. May be the company will be generous enough to mail out discount coupons for hair oil with the annual report!