face value 1, and impractical price band... company z very small as compared to Sun pharma but they kept very huge price even very higher than Sun pharma!!! and what do you mean by face value Re.1. they don''t want to give anything to public! cheating to public... don''t expect any return be wary and prevent ur loss... ideally it''s price should be 110-120 at face value Re.1 that too on higher side. Don''t buy..
162. MINTO| Link| Bookmark|
June 19, 2017 8:53:00 AM
Top Contributor (400+ Posts, 400+ Likes)
Septa sir,good morning. Eris life me applying & avoid? App jaisa bolo .
very now and then this discussion on FV and MV crops up. What matters is EPS and Book value per share. Share splits normally result in reduction in FV. The market value then adjuts itself based on new EPS as number of shares have gone up and not because FV has reduced. Therefore FV of share has got little to do with valuation. In case of Eris there is only OFS and no fresh issue. Therefore EPS will not be impacted by dilution. If the company is successful in maintaining top line and bottom line growth of past , then,asking price is justified. Just like investors look for a bargain, the seller also looks for the best price. Problem comes when financials are mediocre and a high price is demanded.
Mr Gamble It is easy to say ''Ha ha'' Face value always matters every thing If face value is 10 and offer price is 600 do you think it makes no difference It only for the purpose of dividend You will get 10 times dividend and on split you get 10 shares in 600 i.e. 60 each A very simple maths You are quite responsible and knowledgeable How can you misguide others Best of luck in inventing
Agree. that what i said . its 6000 rs stock . only positive thing is no us fda influnce in this company products.
160.2. k l patel| Link| Bookmark|
June 18, 2017 12:15:37 AM
IPO Mentor (600+ Posts, 200+ Likes)
to pkk and market... tumhe market ke bare me bahut kuch sikhna padega... i was thinking in the same way when TCS ipo opened. now see how many times return earned and how many times it issued bonus... and one thing tcs is also having face value of rs.1
Why everyone has made an issue about face value? FV has nothing to do in valuing stocks. It is just an arithmetical adjustment. Assume this two cases Case 1 – FV is 1, share price is 603, and dividend declared is 25% You own 24 shares, you will get dividend @0.25 per share which comes to Rs 6
Case 2 – FV is 10, share price is 6030, and dividend declared is 25% Now, you own only 2.4 shares, you will get dividend @2.5 per share which again comes to Rs 6 only
You see earnings by way of dividend will be same in both cases be it FV 1 or 10
Why company reduced its FV? Answer: Since issue price is 6030 as per FV 10 and lot size is 15000 then share was not divisible, i.e. 15000/6030 = 2.487 shares. Hence to avoid fraction in number of shares the company decided to reduce the FV from 10 to 1. So as to give 24 shares per lot and avoid fraction
FV has nothing to do with share price. Silly ans by experts. @Maan Ki Baat: How u wud know that someone holding 24 share. what if i hold only one share (secondary market), what abt dividend ? Issue price is decided first, if it goes too high (eg 6000/) then may increase the number of share offered to reduce price of individual share. no link with FV. Apple has FV of $0.00001. FV * No. of share defines a liability (or a security money) for the issuers.
Every now and then this discussion on FV and MV crops up. What matters is EPS and Book value per share. Share splits normally result in reduction in FV. The market value then adjuts itself based on new EPS as number of shares have gone up and not because FV has reduced. Therefore FV of share has got little to do with valuation. In case of Eris there is only OFS and no fresh issue. Therefore EPS will not be impacted by dilution. If the company is successful in maintaining top line and bottom line growth of past , then,asking price is justified. Just like investors look for a bargain, the seller also looks for the best price. Problem comes when financials are mediocre and a high price is demanded.
159. MINTO| Link| Bookmark|
June 19, 2017 12:22:10 AM
Top Contributor (400+ Posts, 400+ Likes)
Septa sir why you not comment on Eris lifescience ipo?
There seems to be some problem with HDFC Sec site (may have some bug), even if order is thru it doesn''t appear in order book, hope they will sort out this problem by Monday morning
There is an error in applying using crome and other browsers. Use Internet Explorer and delet history and cookies, then try. Your problem will be solved.
High value ipo compare to other Indian pharma co. Premium is very high & nothing is left for you,instead something will move out of your pocket. Government policy do not favorable for pharma co.Coming days are for Generic pharma co.If i do not forget cadila ipo was list with negative figure. I lost some money on listing day.Company is asking high premium based on future performance but KAL KESNE DEKHA HE, If you relay love this ipo then buy from market at lesser price then ipo price. Many agency suggested to subscribed ipo but remember,S.Chand,ICICI ipo & LNT ipos. What did you get? Anchor list is good in all ipos but see the subscription figure of Tejus .Very poor.Lastly GMP decreased from 140 to 45-50 today.It is only 8 % gain as of today,but most recent ipo list with lesser rate then GMP ( S.Chand/Hudco & many).Do you expect ant listing gain ?, think your self before investing.AVOID & SAVE MONEY FOR CDSL.If I am wrong then sorry to hurt u.
As on 31.03.2016 from RHP (in CRS) Co. Sale PE GSK. 2891. 60.80 ABBOTT. 2679. 36.14 SANOFI. 2244. 29.09 PFIZER. 2103. 36.91 ERIS. 0600. 62.10
Is it justified premium / PE asked by Eris? Is Eris a big company than Abbott or SANOFI, salewise or profitwise ? There''s no control of SEBI over the premium to safeguard the investors.
Eris is the fastest growing company total revenue CAGR of 17% in FY13-17 and CAGR of 29% in Chronic category over the same period. Another positive about the company is that its EBITDA margins have expanded to 37% in FY17 from 22% in FY13 led by focus on niche segments within the chronic category. At upper price band of INR603, the issue is available at 34x FY17 EPS which is at par with other listed players. We remain positive on the company and we believe it deserves premium valuation as 1) it is high growth story led by significant focus on lifestyle related disorders, 2) significantly higher margins, 3) debt free status and 4) superior return profile of 45%+ both ROEs and ROCEs. !!