CCD''s run up to it''s Nov 2, 2015 listing has so much in common with the listing of Manpasand Beverages. 10 interesting similarities to read before listing... 1. A lot of negativity relating to both these offerings before and during their IPO. 2. Existing Pre-IPO shareholders did not sell a single share in both these IPO''s. This very rare phenomenon happens in less than 10% of all IPO''s..but was still common to these two IPO''s 3. HNI subscription was 38% for Manpasand and 54% for CCD. 4. Retail Subscription was 116% for Manpasand and 90% for CCD. 5. While Anchor investors for Manpasand included Big names like Goldman Sachs and Morgan Stranley, CCD''s Anchor investors included BlackRock and Merrill Lynch. 6. Both IPO''s were subscribed less than 2 times. It was approx 1.4 for Manpasand and 1.8 for CCD. 7. The grey market cold shouldered both these IPO''s in the run up to their respective listings. Not surprising given the grey market, as I understand it, is nothing more than a place for two teams I call ''The Flippers (HNI)'' and ''The Followers (Retail)'' to play a game I call ''premium chasing''. Now as I understand, this game can only start when both teams qualify to play a match by at least subscribing to their respective IPO quota fully. The more times these two teams subscribe to their respective IPO quotas, the more exciting this match becomes. However, as ''The Flippers'' failed to qualify to play a match with ''The Followers'' on the Manpasand or CCD Pitch, the ''premium chasing'' game was a washout at both venues. 8. While the premium chasing games got washed out at both venues (Manpasand and CCD) the QIB''s quietly got both fully subscribed in 3 days, without any extension. 9. Manpasand listed at a 9% discount and closed it''s first day with a gain of 2% over it''s issue, post an exciting game of ''1st day 1st show flipping''. This game is a even simpler than ''premium chasing'' as it only required QIB''s to buy all that HNI''s and Retail try to flip on listing day. Manpasand closed at 453 of Friday 30th October 2015, just about 4 months after they were issued at 320 and listed at 291. QIB''s won the Manpasand game easily. It was almost as if ''The Flippers'' and ''The Followers'' gave them a walkover. 10. Another game of ''1st day 1st show flipping'' starts at 10AM on the BSE and NSE. Will QIB''s win this one as well? Guess we''ll know in another 4 months :)
@Septa. Yes, you make a very relevant point. However, I believe it''s safe to assume the QIB''s noticed this before they oversubscribed their portion of the 1150 Cr of the '' loss making'' CCD over 4 times. Interestingly,. the QIB''s portion of the smaller 400Cr. ''profit making'' Manpasand IPO was barely oversubscribed 2 times. They have seen something in CCD which the Flippers (HNI) and Followers (Retail) haven''t. Only time will tell if they saw a pot of gold or a mirage in the desert. I''m just intrigued by the unusual ipo subscription figures of a company wherein pre-ipo stakeholders haven''t sold a single share. Personally, I''m not even hazarding a guess as to what will happen to it on listing and in the subsequent 4 months.
These days QIB r flushed with money and very important cheap and free money so the buy anything and everything ..... end of the day investment is based on demand and supply that is reason assets value increase however same reason is true for bubble anyway best of luck i genuinely hope RII get some gain on list.
END OF THE DAY CCD sold a loss making company with CARG falling done at step valuation ...
Andy Both r in food business is the only point in common. CCD is company whose potential u will see 1 year from now. I have only one suggestion If listing at discount those who have not applied should buy. And if at premium then do not sell who applied.
@Atul & @Septa, Thank you for your inputs. I have one final question. Purely in terms of your personal opinion, how do your rate the quality of management at CCD on a scale of 1-10? Closer to 1(worst) or closer to 10 (best) or somewhere in the middle? Thanks
All know VGS connection and S M krishna Ex CM of Karnataka crony capitalism and connection have help a lot in VGS in making him one richest man in karnataka.... howeverI will still give 8
Thanks @Septa. Your rating sync''s well with a few others I''ve received. They also seem quite gutsy to announce their first post-listing quarterly result board meeting exactly one week after listing. Will be watch their 1st day listing before taking a final call. Good luck to all those who have already invested!
IndiGo :- The issue premium rates were Rs 8-9 and interest rates on Rs2 lakh applications were Rs 2300/2400 last week. But Rakesh Jhunjhunwala''s Rs400 crore bid in HNI spurted the premiums to Rs 31 to 32 and interest rates to Rs 3400 to 3500
SH Kelkar :- Enormous response to the issue took the premium rates from last week''s Rs6/7 to Rs22 and now it is buyers'' Rs19/20. Minimum application rates have also spurted from Rs 500 to Rs700/750.