Central Bank of India IPO Message Board (Page 52)

Yes definitely you can subscribe for central bank as the issue is a Big issue and also chances of allotment will be high if you subscribe atleast 3 to 5 times of Min lots ie atleast 180 to 300 shares should be subscribed at cutoff proces (102)

I am new to this share trade can anybody advise me whether to apply this issue or not

Hi All,

AS we all know CBI is going to be heavily over subscribed. I want to invest 36000. What are my chances of allotment? Should I look for some other issue.
Please reply.
Thanks.

hi all,

any one have an ides about Asian Hotel's bonus plans? are they going to issue a bonus of one share per every 2 holding shares or 5 shares for every 10 holding shares? please confirm me....

Capital Market Review:
CM RATING 47/100

Central Bank, third highest branches network in India. Still unable to capitalise on its retail network.

Strengths
__________
1. Has pan-India presence with branches in 27 states and three Union Territories. End March 2007, the bank operates with 3,194 branches and has the third largest network of branches in India: 1,341 rural branches, 759 semi-urban, 575 urban and 519 metropolitan branches.
2. The low-cost deposit current and savings accounts (CASA) constitute almost 42.09% of the total deposits end March 2007. The bank stands next only to SBI in maintaining a high CASA in its books. Going forward, it aims to further increase the low-cost deposits by leveraging the branch network and customer base, particularly in the rural and semi-urban areas.

Weaknesses
__________

1. The gross NPA to gross advances stand at 4.81% and the net NPA at 1.70% of the net advances end March 2007. These are relatively higher compared with industry peers.

2. Huge exposure to priority-sector lending, historically carrying high NPAs compared with non-priority sectors. This is evident from the fact that gross NPAs comprised 7.99% of priority sector advances, End March 2007, priority sector lending stood at 43.55% of the net credit. Of this, loans to agriculture and small-scale industry borrowers stood at around 17.91% and 6.58% of the net credit.

3. Business per employee stood at Rs 3.76 crore in FY 2007. This is one of the lowest among comparable PSU banks. This indicates excess staff or low productivity of staff.

4. End March 2007, central banking solution had been implemented in 324 branches and 29 extension counters covering only 35% of the business. This is far below many other banks.

5. The financial track record is not encouraging. Profit fell between FY 2004 to FY 2006. Even in FY 2007, net profit jumped only because of fall in provisions.

6. Current paid-up capital stood at Rs 324.14 crore. This is after restructuring its capital base on March 2002, by netting off accumulated unabsorbed losses of Rs 681.31 crore against paid-up capital. End March 2007, the balance capital of Rs 1124.14 crore was restructured to convert Rs 800 crore in perpetual non-cumulative preference share capital and Rs 324.14 crore in equity share capital. So, the current book value of around Rs 77 is earned not because of good operational performance in the past, but largely because of the restructuring of equity.

Valuation
_________
EPS for the year ended March 2007 on post-issue equity works out to Rs 12.3.

Nevertheless, profit for FY 2007 includes recovery / writeback of provisions of Rs 163.33 crore, and a repeat of such recovery every year seems difficult.

The price band of Rs 85- Rs 102 gives P/E band of 6.9 to 8.3 times FY 2007 EPS on post-IPO equity Among the comparable banks, Allahabad Bank and Syndicate Bank trade at P/E lower than the lower band. Other comparable banks like UCO Bank and Indian Overseas Bank trade within this band. Only recently-listed Indian Bank and Oriental Bank of Commerce are trading above the upper band P/E. The price band gives price (P) / book value (BV) band of 1.1 to 1.2 times post-issue BV and 1.5-1.7 times P/adjusted BV (after deducting NPAs). Currently, Allahabad Bank, UCO Bank and OBC are trading around P/BV of around 1.1. Allahabad Bank and OBC are also trading at lower than P/adjusted BV of 1.5 though other comparable banks are trading around or above 1.7 times P/adjusted BV. Overall pricing has been done to keep the offer interesting, though the valuation is not as low as it appears.

oh no!this one also is going to be heavily subscribed.small retailers cant participate.yeh tho 1 lakh waalonn ka hai.10-20000 hamara jaison ke liya nahin

seems to be gr8 issue. some experts are giving inaccurate opinion

hey guys dis is just a sugesion ....
u may hav some thing else to say tooo...

i have a a/c in icici direct frm last 3 yrs
but till date i have never applied online... may b physical form is time consuming n even needs documents to b attached......
but remember
i`ve learn that giving cheque payment i can stop payment my chque of my investment if i feel that retail subsciption is out of quetion & can hardly get allotment so i can invest de same in some other ipo ..............
PLAY SAFE..............ITS our time NOW-------INDIA POISED

Looks like a god issue.

Jinishan's I dont think so that Subs fig will be as high as mentioned below bcoz CBI is a very Large Issue. OK FIIs might have pumped up enough money but to expect Retail subscrition levels mentioned below is bit unbeleivable can't compare with small offerings like Omni or Zylog etc....

I expect CB will overscribe as follows finally;

QIBs Non Institutional Retail (RIIs) Employees Total
60 100 50 3 ~100 times

So, if you apply in full also, allotment is luck only i feel.

issue over sub ...5 times ..on the first day itself ..so don't avoid it ..apply for it .

premium is increasing everyday ..it started with 10 Rs.. before 1 week and now on 45 Rs .....so a good issue overall

CBI could be good medium term bet all banking stocks doing well...Listing @ around (20-30 % +) premium...so how shud i strategize my investment.. shud i go bang on for CBI or looking @ grey market prem. spread it in Zylog or Omnitech as well...How many i can expect to get in Zylog if i invest for 100 shares and it gets Oversub. in retail say 70-80 times or more

First day itself 2.94 times!!!!!!!!
I looooooose my hopes.

This is other case of INDIAN BANK .Go for Omni or Zylog

I am to buy 300 CBI Shares....can you plz tell me how much can the premium go upto ??? and around which date will the listing be ????

http://economictimes.indiatimes.com/Central_Bank_IPO_fully_subscribed/articleshow/2229369.cms

Central Bank IPO fully subscribed

MUMBAI: The initial public offering of Central Bank of India got fully subscribed just hours after the issue opened.

As per the NSE website, the issue was subscribed 1.09 times. It received 8.70 crore bids for the issue size of 8 crore shares. Around 98,040 bids were made at cut-off price.

Hi, As per my analysis i think this ipo is good compare to omnitech ipo, because both has same prise & lot size but in omnitech allotment chances are too less compare to CBI, if CBI give you 40 Rs/- premium than for 1 lot you can get profit of 2400 so bid for 4 lot CBI than you can get round about 10000/- profit, while in omnitech if you get allotment than you can get 10000/- for 1 lot but chance is too less so go for CBI.
If you have anyother idea please share.

Thanks Mr M D Rajan.

I will get in touch with ICICI officials. Bu the general feel is that, there is no neccesity since we have already submitted the pan copy to the bank at the time of opening the dmat account.

Have a great day.

Regards
Kamal.

I have read many articles and watched a few TV analysis and the general feeling is that the price band is around 6 times at upper price so its heavily stretched..as PSU Banks trade at this price only. Better is to AVOID this IPO. What do you guys say?