What should be the strategy for cola india on listing.
First what is the expected EPS for March 11 & 12 for Cola India?
Further public listing n increased scrutiny under microscope by large no of both international n local investors of entire coal india operations will itself lead to huge improvements in the performance is my guess.There are lot of inefficiencies still prevalent in cola india which if removed can lead to further improvements. Also what are the no of employees retiring in next 2-3- 5 years as that will also reduce costs to a large extent.
Also friends have a close look at SSP fertilizers makers specially Liberty Phosphate in view of nutrient based subsidy >Yetserday both Khaitan N Rama Phosphate were locked in upper circuit while Liberty is still available at forward PE of 4
2933 gama, Did you take into account the retail applications submitted at 245? if you consider that, those who applied fully will get anywhere around 195 shares, plus or minus five may be. Even this considering there will be some rejections.
1. As per RHP, any unallocated portion of reserved category will be added to NOTP-Net Offer To Public. 2. NOTP comprises of not only NIIs and RIIs but also QIBs. Hence NOTP will be shares among them in the ratio 50%:15%:35%(QIB:NII:RII)
Now for calculation part:
NOTP 568472796 EMPLOYEE 57314144 TOTAL NOTP 625786940
RETAIL AVAILABLE (625786940*0.35) 219025429 CUT OFF APPLIED 392048500 OVERSUBSCRIPTION 1.789
Note this oversubscription is before technical rejections.So oversubscription is bound to fall after technical rejection and cancellations.So I have incorported other estimated oversubscription details also.
without discounting future growth, if we take current fy10 eps of 15.5 and growth of 20% year on year, at PEG as 1, the fair investment price comes as 310. and if take fy11 eps of 18, the fair price comes out to be around 360. so after listing it should settle between 310-360. Once more clarity on earnings and future growth comes, future growth may be disconted, given that new mining policy coming into effect, don't give any set back. seeing the quality of the asset, size of the operation, all the long term fund's managers or institutions should take their position owing to their binding on the investment according to the ratings, its having highest grade from all rating agencies. at this time downside is very limited, and upside is also capped at 360, which may be settle either upward or downward after the decision on new mining regulation, which is a major concern for all the mining companies, which are auguring high prices at current. if any unfavourable decision comes, whole sector will be downgraded and underperform in future. So, in this volatility, booking profit above 310 will be a wise decision till the mining policy finalizes its course.
Mr. CA Ramesh - do you really think increasing Quota to 70% from 35 for Retail will help poor people becoming Richer ? Its a 100% book keeping techinique which SEBI is bound to follow. It cannot be changed and thats good too coz unless QII's have more % than Retail, you cannot decide the fate of the companies like RELIANCE. where in most of money is from QII's . Gone are the days when people beleived undoubtedly in RELIANCE
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October 25, 2010 10:51:23 PM
Top Contributor (600+ Posts, 100+ Likes)
2922. Anonymous
CA ji if SEBI increases the quota also than right now floating to survive retail investors will sink. If SEBI makes quota of 70%, only those oprators who have kilo and tonnes of money will run IPO market.
SEBIs decision is ridiclous in my opinion. They could have made it upto 1.25 to 1.30 if they were so badly wanting to increase limits. Imagine what will happen to average to good ipos? No one will risk huge 2 lacs and small investors are already side lined by limit exceeding.