MUMBAI (Reuters) - Infinite Computer Solutions (India) Ltd said on Tuesday it has fixed a price band of 155-165 rupees a share for its initial public offering (IPO) of 11.5 million shares to raise up to 1.9 billion rupees.
Existing shareholders will offload 5.77 million shares, while another 5.7 million shares will be issued as fresh equity, resulting in equity dilution of 26.17 percent, the company said in a statement.
The publi offer of the IT services provider will be launched on January 11 and will remain open till January 13, it added.
SPA Merchant Bankers and India Infolinie Ltd are the bankers for the issue.
Speculating listing price carries too much risk. When valuation is high, risk-reward ratio would not be favourable. Consider around 15 IPOs which are fundamentally over-valued in this bull-market cycle, had you applied to all, investors could be sitting at loss.
Preserving capital is utmost important in market.
However, if you take a view (whether fundamental or technical or momentum) post-listing, a good trader can make quick profit in very less time.
I reiterate that applying to high valued IPOs carries high risk & risk-reward ratio will not be favourable. Investors loose more than they make.
Hi all This is what I had posted on 12th Decr immediately after the issue closed.How prophetic it has become.
contra think Dec 12, 2009 9:45:31 AM IST @58 HI, The issue has hardly found favour with retail and non instnl investors. Their under subscribed portion will be allotted to QIBs.
With less number of shares with small guys(retail) and no pressure from the NII's who would need to make a quick get away from all IPOs, there is a distinct possibility that the share will not fall drastically below offer price. In fact may see some gains.
Also factor in the Godrej name. Quality institutional applications have come in.
godrej ipo hni and reatailar portion underscriber.so most of share given to qib. therefor one game show. so it will listed at 522. and then it will go up.
on what basis you say it will list at 520 rs. check urself reality stocks comparing with same player kolte patil developer avaialble at 15 p/e,hdil much bigger player available at 16 p/e ,pasvnath much much larger player having pan india presence available at 26 p/e
My friends Godrej properties priced it at 35 p/e so why should this stock not trade at 15-16 p/e as compared to its peers which makes its fair value at 250 rs .
DLF largest company in real estate in whole asia is avaialbel at 35 p/e and is considered expensive and no comparision with dlf
All reality stocks are down their issue price. even today when markets are up and lot of stocks going up 5-10%(fertilizer sector) there is no recovery in reality stocks.
this stock will have heavy sellers tommorrow and there is no lic or sbi to save this stock as was the case with jsw energy. stock to fall heavily after listing to 380 rs and will be available at 250 rs after some time same of what happened to other reality stock. instaed buy stocks like cox and kings,nhpc from secondary marekt from listed ipos rather than godrej property with no land bank and just on paper stock