Indiabulls Power Limited IPO Message Board (Page 13)

There is no reason this stock can go up.As you all know first project commissioned on 2012.Compare it with Adani which project is going to commission soon in MARCH 2010.
SO DECIDE URSELF I THINK INDIA BULLS POWER IPO will not open more than 38 rs in any market condition.rather buy adani power target 200 in MARCH

Thanks Mr. Ravi for detailed & proper responce

Dear 180. Ghansu Ganje,

A greenshoe is a clause contained in the underwriting agreement of an initial public offering (IPO) that allows underwriters to buy up to an additional 15% of company shares at the offering price. The investment banks and brokerage agencies (the underwriters) that take part in the greenshoe process have the ability to exercise this option if public demand for the shares exceeds expectations and the stock trades above the offering price.

This is how a greenshoe option works:

•The underwriter works as a liaison (like a dealer), finding buyers for the shares that their client is offering.

•A price for the shares is determined by the sellers (company owners and directors) and the buyers (underwriters and clients).

•When the price is determined, the shares are ready to publicly trade. The underwriter has to ensure that these shares do not trade below the offering price.

•If the underwriter finds there is a possibility of the shares trading below the offering price, they can exercise the greenshoe option.

In order to keep the price under control, the underwriter oversells or shorts up to 15% more shares than initially offered by the company.

For example, if a company decides to publicly sell one million shares, the underwriters (or "stabilizers") can exercise their greenshoe option and sell 1.15 million shares. When the shares are priced and can be publicly traded, the underwriters can buy back 15% of the shares. This enables underwriters to stabilize fluctuating share prices by increasing or decreasing the supply of shares according to retail portion demand.

If the market price of the shares exceeds the offering price that is originally set before trading, the underwriters could not buy back the shares without incurring a loss. This is where the greenshoe option is useful: it allows the underwriters to buy back the shares at the offering price, thus protecting them from the loss.

If a public offering trades below the offering price of the company, it is referred to as a "break issue". This can create the assumption that the stock being offered might be unreliable, which can push investors to either sell the shares they already bought or refrain from buying more. To stabilize share prices in this case, the underwriters exercise their option and buy back the shares at the offering price and return the shares to the lender (issuer).

One of the benefits of using the greenshoe is its ability to reduce risk for the company issuing the shares. It allows the underwriter to have buying power in order to cover their short position when a stock price falls, without the risk of having to buy stock if the price rises. In return, this helps keep the share price stable, which positively affects both the issuers and investors.

Good question Ghansuji , Jaise Apan Black Shoes Aur Brown Shoes Pahanne ke kam mai lete hai ,, Vaisai hi Promotors Green Shoes Public Ke Taple Me marne kai kaam mai lete hai

In Todays market Subscription is not a matter
The Matter is Speculator and Promoters
They are not depand on retailer

Any body knows about " Green Shoe " option , What is this ???

At 4PM
overall 21.79
Retail at cut-off 0.86 Times

kedi,

i agree with you, but one should not take decision on the QIB portion of subn. the retail is more reliable guiding factor. in the case of IPL one should not bank on the QIB.
it is very risky. for getting 5-10% we are putting lot of money at risk.

Looking at the subscription figure where QIB have oversubscribed nearly 30 times equal to oil india figure and secondly this is Ibull promoter known for manipulation so the listing would be 50+ so apply in retail and one can get 100% allotment as retail category has been subscribed by .75 time and by 6PM it would not exceed more than one time and even if more than one time, the gree sue option which the company is likely to opt for hense still full allotment.

Arti
Todays Market is not depand on Retailer
The Best perfomer in rece4nt IPO OIL only 1.7 Times subscription on retail
And one of the bed perfomer NHPC Retail is subscribed by 3.7 Times

one should keep in mind that the issue subscription of the retail will be guiding factor. that is the only people who put thier own money in the market. All other do not have their own money. QIB/FI '/MF s do not have their own money to loss . they will apply with some other strategies which are not suitable to all individual investor. QIB/FI /MF has a connection with the company promoters / lead mgr , brokers etc.
so go by public money not by QIB.

At 3PM
overall 21.17
Retail at cut-off 0.75 Times

Mr. justise i am fully agree with you,govt should take action against NHPC fraud case.

it is good issue

At 2PM
overall 19.70 Times
Retail at cutoff 0.66 Times

Dear friends,
all the QIBS are not fools who are putting thier money at upper band. to gain maximum one sould apply in this IPO.
also Mr. SP Tulsian is saying- dont apply or applt at lower band. now apply the golden rule - " apply when SP tulsiyan says - ignore. Dont apply when he says -apply."

I am confused......
may be there will be manipulations on the listing day on this script.....
But even the subscription figures of QIB may itself be a manipulation....

Surely its a high risk bet - Thinking of applying with 2 lots which will be a minimum profit or Loss...

retail only 0.59 times till 1 pm. don't apply. better buy good scrips in open market

SUBSCRIPTIONS ZOOMING

Total Issue Size      278636000
Total Bids Received      4648979400
Total Bids Received at Cut-off Price      58443300
No. of times issue is subscribed      16.68

AWESOME RESPONSE FROM ALL EXCEPT RETAIL

Indiabulls Power initial public offer (IPO), which would close today, has been subscribed 9.5 times and its qualified institutional buyer (QIB) portion has been subscribed 17 times. Commenting on the same, Deepinder Bhatia, Fund Manager, Ironbound Capital, said the issue was coming in at a reasonable discount. “Indiabulls Power pricing is at the lower end of the price to book ratio.”

“We will wait for the company’s valuation gap to fill,” he added.