Dr. Lal PathLabs Limited IPO Message Board (Page 17)

The form for Alkem Laboratories, a Rs 1,350-crore issue on the upper price band of Rs 1,050 per share, is being sold at Rs 1,500 Wednesday, a premium of Rs 107 per share. The IPO lot size is 14 shares. However, the grey market is expecting the retail portion to be subscribed twice (as on Wednesday), which means the actual premium Alkem commanding is Rs 214.

The forms for Dr Lal PathLabs is being sold at Rs 1100. As the minimum bid lot is for 20 equity shares, the premium over the IPO price is Rs 55 per share. The IPO is priced in the range of Rs 540 to Rs 550. Dr Lal PathLabs is planning to raise about Rs 638 crore. Grey market is an unofficial market where shares of new issues are bought and sold before they become officially available on trading platforms. If the shares list at a premium to the offer price, the participant in the grey market makes a profit.

Chances of loss are rare as grey market demand determines investor interest of most small- and mid-issues. "Huge demand for the last few IPOs from high net worth investors who get easy financing at much lower rates are the drivers for the grey market" said Arun Kejriwal, founder & CEO, KRIS Research.

Retail Discount Rs 15

Read the ipo analysis and recommendation at
http://myinvestmentideas.com/2015/12/dr-lal-pathlab-ipo-should-you-invest/

Any retail discount ?

Any retail discount ?

Dr. Lal ... expected list around 700ish

I want to clarify one thing. I am not a broker. I am not a buyer or seller in grey market.

I want to give some brief overview of grey market transaction. Grey market activity runs on trust between broker and investor. You need to go to broker who knows you very well and both have trust on each other. It is almost impossible to sell or buy in other city in grey market. Lots of cash transaction is involved in grey market.

If you sell your application in grey market then you need to give your application details to broker. If you get allotment then broker will sell your application on listing day. Everything in your demat account. You will get selling amount in your bank account directly or by check. Then you need to give total profit after deducting grey market premium cost in cash to broker. Tax liability is yours.

I personally not believe in grey market becaof tax liability.
I am giving an example. If you sell Dr. Lal in grey market for Rs. 1200. Total profit you see Rs. 1200. Suppose you get allotment and Dr. Lal list at Rs. 700 (This is possible becaat present premium is Rs. 90 in grey market). Total profit is 20 (no. of shares) * 150 (listing gain) = 3000 Rs. You need to pay 3000-1200 = Rs. 1800 in cash to broker. However, tax liability is yours. 15% short term gain tax on Rs. 3000 not on Rs. 1200. You need to pay Rs. 450 income tax. Therefore, your total profit is Rs. 1200 – Rs. 450 = Rs. 750.

Why we need to take headache for only Rs. 700 to Rs. 800 ? I am following grey market activity only for future predictions. It is almost 80% probability that if grey market premium on kostak is more than Rs. 1000 then IPO will list at good price and investors will make good money on listing day itself or small period after listing.

Very well said Uchit!!!
Better to apply yourself if you find any issue interesting rather than selling in grey market

Very nicely explained. Thanks !!

Issue Name

Price Band

Grey Market Premium

Kostak Price

(Minimum Application)

Kostak Price

(Rs. 2 Lac Application)

Alkem Laboratories

1020 to 1050

190 to 195

1500 to 1600



Dr. Lal PathLabs Ltd.

540 to 550

96 to 98

1150 to 1200

plz suggest apply or avoid,as pinkyg says avoid,but grey premium is very strong

Is there any retail discount in this Ipo ?

I have 5 applications. Is there anyone who wants to buy my applications in Dr. Lal Path Labs ?
How is the selling done ? What are the tax implications in such selling ?

Septa ji & pinkyjain pls... guide we apply dr. Lal path lab or not?

I am not applying IMO it is very pricey could list at premium however I avoid anything over 30 PE

Thanks septa ji.... ur guidance help us...

anybody pls give me the cotact no for sell application in ahmedabad

Grey market for both IPOs Alkem and Dr. Lal is very active in Ahmedabad.
Alkem, premium 190, kostak 1450 to 1550
Dr. Lal, premium 90, kostak 1100 to 1175

pls give me contect no in ahmedabad fro sell application

what is latest grey market rate per application in ahmedabad ?

WHAT IS LATEST KOSTAK PRICE IN RAJKOT......

Sorry for typo misstate in my previous analysis. P/E is coming more than 50.
EPS data is not available. But I calculated by following data:
Company is selling 14.1% of share (total 11600000 shares in 14.1%). If we count total shares for 100% it comes to 82269503. Net profit for year 2015 is 879000000.
EPS = 879000000/82269503 = 10.68
P/E = 550/10.68 = 51.49

hiii uchit...ur calculation is good...and it will surely help in investing in this ipo..thanks

CHECK KAUN SE NAM KA HAI

To apply
Or
Not to apply.

Alkem Laboratories IPO
Issue Detail:
»» Issue Open: Dec 8, 2015 - Dec 10, 2015
»» Issue Type: 100% Book Built Issue IPO
»» Issue Size: 12,853,442 Equity Shares of Rs. 2
»» Issue Size: Rs. 1,311.05 - 1,349.61 Crore
»» Face Value: Rs. 2 Per Equity Share
»» Issue Price: Rs. 1020 - Rs. 1050 Per Equity Share
»» Market Lot: 14 Shares
»» Minimum Order Quantity: 14 Shares
»» Listing At: BSE, NSE

Dr. Lal PathLabs Ltd. IPO
Issue Detail:
»» Issue Open: Dec 8, 2015 - Dec 10, 2015
»» Issue Type: 100% Book Built Issue IPO
»» Issue Size: 11,600,000 Equity Shares of Rs. 10
»» Issue Size: Rs. 626.40 - 638.00 Crore
»» Face Value: Rs. 10 Per Equity Share
»» Issue Price: Rs. 540 - Rs. 550 Per Equity Share
»» Market Lot: 20 Shares
»» Minimum Order Quantity: 20 Shares
»» Listing At: BSE, NSE