Higher subscription should lead to higher gmp and if more and more grey market trades keep taking place approaching to listing date then listing price could be higher. Subdued current grey market activity is not a positive sign. Subscription level doesn''t have a direct relationship to listing price. Listing price depends on the demand on the listing day which depends on so many other factors including sentiments on the day of listing. gmp and subscription are better indicator of demand of shares offered in IPO before listing which may or may not continue post listing. All the best to all allotees.
on Aster listing day , sensex was 300+ and nifty 95.Still listed at discount due to high price.In HG infra case price should be below 220-225.HG infra came when nifty was 10500+ and today closed below 10250 and yet bloodbath days to come.
People were negative about Galaxy Surfactants ipo also. However on the listing day maket condition came out to be good and just after listing it went up by Rs150 from the listing price on the same day. Let''s see what happens on coming Friday.
HG INFRA may be better than most of the current/forthcoming SME and big ticket IPOs including Bandhan bank, Bharat Dynamics , ICICI DIRECT. COM which will find it difficult to get a subscription of even 5 times. In any case I am sure people won''t loose money in HG INFRA.
IPO NEWS :- Leading seafood exporter Devi Seafoods yesterday filed draft papers with markets regulator Sebi to raise Rs 900 crore through an initial public offering.
Some interesting facts about bandhan bank as per DRHP
Bank has posted EPS of 1 paisa only ( not rupee ) during March 2015 however on operational basis it was making loss !
In DRHP there is a long list of peers group never seen before !
They are icici ,hdfc ,axis ,kotak ,yes ,indusind ,idfc , rbl ,equitas ,ujjivan ,au, bajaj finance, gruh finance...
All these have different P/E , P/B,RoNW and other parameters making us difficult to compare.So the only thing left for investors like us is GMP to take decision for subscription.Let''s see what is the price band.
Some interesting facts about your comment Bhallal dev , after reading DRHP you must have understood that entire business was transferred from other entity before commencing Banking operations. so,its natural that it posted loss/minute profit coz there isn''t any business back then. and this business must be carefully analyzed. I''ll list out something for you *almost all their asset base belong to priority categeory, which is giving them 10.1% net interest margin. * 40% priority sector loan is sufficient for banks, so these people can build a very good asset base in urban going forward. margins may contract but they can have accelerated asset growth. * Management seems like people who knew this rural category very well they have almost 20+ year ex building this business which such a customer base and they made it a 40000cr business. True wealth creaters *they eventually have to reduce their holding in this bank according to the banking regulations so, in the next 10 years there will be huge equity dilutions which can improve the capital base. i somehow feel optimistic about this company, many indicators to believe that this is next indus ind - deposits, retail base etc