NOW EVERYTHING LEFT WILL BE INVESTED IN BAJAJ, NOW ITS THE BEST CO TO INVEST, INSPITE IF U RECOLLECT MY ERALIER POST WHERE I MENTIONED HOW PROMOTERS EATEN RS.85 CRORES FROM THE CO AS DIV. PRE IPO, MAKING ITS NET WORTH TO RS. 25 CRORES.SUPPOSE IF THIS HAVE BEEN A FIN. STOCK NO BODY HAVE BOUGHT THAT INSPITE ITS GROWTH, IT RAISING MONEY FROM IPO 12 TIMES MORE THAN ITS NET WORTH AS ON 31-12-2009, THATS NOT A GOOD NO.
IT RAISING MONEY FROM IPO 12 TIMES MORE THAN ITS NET WORTH AS ON 31-12-2009,
IT RAISING MONEY FROM IPO 12 TIMES MORE THAN ITS NET WORTH AS ON 31-12-2009, IT RAISING MONEY FROM IPO 12 TIMES MORE THAN ITS NET WORTH AS ON 31-12-2009,
After watching subscription of EIL & SKS going about 3 times in both IPO. That means Retail subscription was worth about Rs 2200 Cr ( Considering few stop payment of checks in EIL & SKS ).
That leaves good news about Retail Quota in Bajaj Corp. I expect bajaj corp retail not to cross 10 times. Hence good listing gains are expected.
SJ, Not applied to SKS,Nothing to do with valuations however.I am even foregoing good 4-5 K per application.Some local issues with SKS,that's all.I am bullish on Bajaj corp.GEM mentioned about Shishir appearing in ET & Saying about how margins are at its highest & raw material prices lowest.I think spending is essential part in marketing the products in FMCG.Any how the good thing is they are using the money to diverify .FMCG Co's grow at 15-20% & they command a PE of 35-40% ,this is growing at more than 40 % & quoting at a PE of 20.Rural people have a liking for Bajaj products,It does not make any difference to them whether the company is owned by Rahul or Shishir or whoever as long as it is a bajaj product.So I am pretty sure their new products will be a hit.FMCG Cos are defensive stocks also & hence no problem even if market tanks to 14 k or 12 K.
Dear Sreedhar, I have a peculiar problem with regard to applying Bajaj Corp. I live in Madurai which is not a bidding center for Bajaj Corp. I have to take DD on Coimbatore and submit my application a day before the issue closes for Retail category. I took DD and applied for Technofab, for which I had the same problem. As, in my opinion, Bajaj corp is an issue that will give only limited returns, I am keeping my fingers crossed. I can make 1 full application online, for which there is no problem. Remaining 2, I don't know what to do.
Dear Sreedhar, I acknowledge I had made a mistake in my calculations regarding the number of shares one will get in Bajaj Corp. I have also posted the corrected figures. Bajaj Corp premium will definitely go up and I think it is a risk free game. But the problem will be the heavy subscription and therefore the lesser number of shares going to be allotted.