who is this" ADVOCATE " on " NEGOTIABLE INSTRUMENT ACT, 1981
GOOD .......
mai bhi thoda haath saaf ker lu es per..
1) The cheque issued unpaid by the bank must have been issued in discharge of a debt or other liability wholly or in part. Where a cheque is issued not for the purposes of discharge of any debt or other liability, the maker of the cheque is not liable for prosecution under section 138 of the Act. A cheque given as a gift or for any other reasons and not for the satisfaction of any debt or other liability, partly or wholly, even if it is returned unpaid will not meet the penal consequences.
2)Return of the cheque unpaid for reason of insufficiency of funds , if other reasons like sign mismatch etc then 138 does not apply.
i never invested ( except 3 times oil india, cox, fortis) in any ipo where chances of allotment is more than 50%........
i have always choosen capital protection over irrational return.....
as i believe that rational return in an ipo in one applcn is 1600 - 3200, i dont want more......
u take those all ipo from me where ramkying( 1 time) happens. i avoided HT MEDIA due to this reason as well....
if i require 10% return in an ipo with 100% allotment, i go to secondary market not primary markey......
i apply in an ipo with the caveat that i will get 30% max allotment.....
i never used " STOP LOSS " in life so i cant use it on listing day, so if i have 20 lac rupees and i invested in ramky then if anything goes wrong i will keep holding the "NARIWAL" in my hand for whole life , because i dont book losses.....
to thoda samhal ke chalta hu main, baap ka paisa hai na yaar.....jawab dena padta hai.....
Electrosteels Ltd IPO of fully owned subsidiary of kolkata based prestigous and ggod quality management Electosteel Castings looks interesting and is like betting on something with good management which is still yet to start its business. It is the best time although highly risky to bet on some project in its commisioning stage.
But when does retail inbvestors like you and me get such a good oppurtunity...to invest in a company at its installation phase....? Only PE investors and Financial Institutions get that oppurtunity.
We should thank the management that they are giving us such an oppurtunity and that too close to face value
Can you remember when you got any IPO at face value..?
Now agreed that management needs funds as they have 70% pledged shares in this subsidary that is 35% of the group electrosteel parent group. But IPO will reduce there debt and give them funds tom install thsi project.
I also agree that just that it is giving shares at face value it is good IPO. In fact many people here might be suspicious that why are they giving IPO at face value..? There is something fishy..?
But what is wrong...in that..? If the project is already started and just in inital stages hence they are giving face value.....Had it been completed and started operations do you think management would have been foolish enough to give you shares at face value
Management is saying that they themselves with high debt are taking gamble in this project and hence giving the same oppurtunity to you Bhola...
I know there quality since i am from Kolkata and i know the management quality is good
Go and see in moneycontrol there last several year performance
There book value is 48 share price at 50. They were sitting at heavy debt and losses in slowdown couple of years ago.. Every other commodity stock from Tatas to Jindals suffered in their steel business at that time. So electrosteel is no exception. But now they willl perform better and your money can double in the parent company Electrosteel Casting in next 1 year.
You know Bhola ....Yesterday i was watching Investor Summmit of ET NOW feauturing Madhu Kela Nilesh Shah Ramesh Damani Nirmal Jain of IIFL.
In that Madhu Kela gave a very interesting example of a big commodity bet he took in 2003.
Yes you will be suprised that the company name was Jindal Steel and Power
He said:
" Back in 2003 when I would have mentioned someone that Jindal name and I am investing in Jindal Steel And Power they would have seen me with irritaing looks and said that wether i was Son in law of Jindals that I was touting Jindal like chor perceived group at that time. But the fact was that I bought a company that had gone thru debt restructing and had good production capability good funds for Capex and had mines in physical assets to show. TODAY IT IS MORE THATN 20 TIMES return for me."
You should watch that programmme to where veterans like ramesh damnai who bet on Jet airways at 150 nirmal jain who betted on Hul in 2000. It will be repated in night after 8 pm or in day 2-5 pm probably on ET now . Also wath Ramdeo Agarwal on ET Now on basics of investing and how he picked multibaggers....TELLING TO STUDENTS in Narsee munjee institute of Management.
The point i am making is Good quality Management taking a bet in a good business in growing economy and consumption growth in india should be taken a bet on...
Same is the case of ELectro Steel IPO.
1)The group is setting up a 2.2 MTPA Integrated Steel and Ductile Iron Spun Pipes project in Jharkhand. The total cost of the project is Rs 7384.00cr
2) The company has raised debt amounting to Rs 5447cr from various banks and the balance is to be funded through equity, including the share premium. The promoter group has contributed Rs 700cr towards equity.
3)The project is being set-up in technical-cum-financial collaboration with Stemcor Mesa DMCC, UAE - a group company of Stemcor, UK. So ggod investors backing the project and more funds can be bought in if required
4)The company will have a debt-equity ratio of 2.84:1.
5)The promoter group company, ECL, is in the business of manufacturing Cast Iron pipes for over four decades and Ductile Iron Spun Pipes since the last 15 years. Hence experienced management
6)Experienced Promoters. Integrated operations including captive power plants. Locational Advantages.
7)ECL has already, in place, a well-developed and established marketing network and clientele in India and abroad for DI pipes, which is proposed to be used by EIL for marketing its own production of DI pipes.
8)EIL proposes to install Captive Power Plant aggregating 150 mw, which shall steadily supply about 120 mw of power enabling to meet about 84% of the total power requirement. The balance requirement will be met from Damodar Valley Corporation, for which the necessary application has been made.
However following are current risks:
1)The original cost of the project was at Rs 5000cr and the project should have gone on stream, in Sept 2009. There is delay and cost over run.
2)The operation requires significant raw materials and non-availability of the same at competitive prices, may adversely affect results.
3)The project is still under implementation stage, there many loose ends to be tied up. The time and cost over-run will take a heavy toll on the company. There are certain uncertainties, including availability of raw materials at competitive rates. Due to high fixed cost, products pricing will be challenging.
So keeping advantages and risks in mind
This is a pure long term invetsment of 3-5 years if you want to apply in THis IPO
Market crash will not affect it coz they are still developing the project although it can be delayed in slowdown or developed economies crash or slowdown
Hence if you are looking for listing gains do not apply. Although it can be easliy manipulated as price is just 10 rupees. But why take that risk with your money when you have other great secondary markwt oppurtunities that can give you 30-40% returns in next 6 months and even ggod quality IPOS that are in plenty that can give good returns..?
So my advice it accumulate this stock in systematic inestment form. Allocate 10 percent of your total current or planned portfolio of stocks.
By in phases. At rs 10 and in stock market crash or correcting at price below 10. It can fetch you exceptional returns if held in that form for next 3-5 years. Trust me.
Dear Sj, Since QIB is subscribed more than 5 times, what is your say in this, can we apply for 1-2 lots for long term basis?. I know that Gem is against this but just want to take if it is long term bet.
APPLY IN ELECTRO ONLY IF U HAVE MONEY MORE THAN IPO SIZE OF VATECH..... HA HA HA
WHY TOO MUCH DIVERSIFICATION..........?????
SUNA NAHI HAI KYA ..... " EK SADHE SUB SADHE , SUB SADHE SUB JAYE"...
KYU TENSION LETE HO YAAR , PAISA HI KITNA HAI HUM LOGO KE PASS ...50 LAC , EK KISI ACHHE MEIN LAGAO NA AND VATECH IS BEST IN REMAINING IPO IN ALL RESPECT
PLZ DONT TAKE MY NAME IN UR POSTS FOR BAD REASONS.......
I M HERE TO HELP INNOCENT / UNEXPERIENCED / CURIOUS INVESTORS WITH MY LITTLE MORE KNOWLEDGE THAN THEM, NOT TO CRITICS AND EXPERT LIKE U........
I ADVICE TO THEM WHO DONT KNOW.......
1) HOW TO BID IN IPO..... 2) HOW ASBA WORKS..... 3) HOW MANY TIMES OVERSUBCRPN.... 4) LISTING TARGETS... 5) FUND ALLOCATION 6) CO ANALYSIS A BIT, SINCE I M A "CA" , U MUST BE AWARE THEY ARE THE MOST TRAINED PROFESSIONALS IN OUR COUNTRY TO ANALYSE THE BALANCE SHEET, P&L ........ 6) ETC...
SO BHAIYA MERE KO APNA DOST BANA LO AUR, MUJHE KUCH GYAN DO....
APPLY IN VATECH ONLY IF U HAVE MONEY MORE THAN IPO SIZE OF VATECH.....
WHY TOO MUCH DIVERSIFICATION..........?????
SUNA NAHI HAI KYA ..... " EK SADHE SUB SADHE , SUB SADHE SUB JAYE"...
KYU TENSION LETE HO YAAR , PAISA HI KITNA HAI HUM LOGO KE PASS ...50 LAC , EK KISI ACHHE MEIN LAGAO NA AND VATECH IS BEST IN REMAINING IPO IN ALL RESPECT.