SHK i am going to give it a miss given week growth and steep valuation i am brought AXIS bank call option and federal bank shares which IMO r better bet..... then SHK
okay i will put one application and i bear both the loss and profit :D however i am i still think this steeply valued stock asking to much leaving nothing on the table
NEW DELHI: Billionarie investor Rakesh Jhunjhunwala is said to have put in a huge bid for the IndiGo IPO in the HNI category, business new channel ET Now reported quoting sources.
The report said Jhunjhunwala has put his bid in the upper end of the price band, as the issue closed for subscription on Thursday. Often called India''s Warrent Buffett, Jhunjhunwala was also one of the early-stage investors in SpiceJetBSE -1.26 %, another low-cost airline.
The market ace was unavailable for comment to an ET Now query on the same.
The Rs 3,018 crore initial public offering (IPO) of InterGlobe Aviation, operator of no-frills carrier Indigo, was fully subscribed on Wednesday itself the second day of the issue thanks to strong appetite from foreign institutional investors. The IPO continued to see huge bids on the third day of its book-building issue. The issue, however, received tepid response from retail investors.
On Thursday, as of 1:07 pm, data on the NSE website showed that the issue was subscribed 1.94 times. But only 38% of the shares aside for individual retail investors was subscribed. The qualified institutional buyers (QIB) portion was subscribed 6.54 times with foreign investors bidding for 6.39 times the shares reserved for this category. Mutual funds bid for 0.15 times the shares in the category.
Most of the bids have come in at the upper end of the price band, showed the stock exchange data. Usually, the demand from retail and high networth individuals picks up on the last day. IndiGo has fixed a price band of Rs 700-765 for the issue, which is the largest share sale to hit the markets since 2012.
On Monday, InterGlobe allocated 10.87 million equity shares at Rs 765 apiece, the upper end of the price band, to anchor investors aggregating to Rs 832.03 crore.
In October, Jhunjhunwala increased his stake in Polaris Consulting to 4.99 per cent from 4.74 per cent. Earlier during September quarter, he upped his holding in Intellect Design from 3.75 per cent to 6 per cent. The stock has doubled so far in 2015.
Any idea why FIIs showed intrest in this IPO? Many brokers remained cautious and said its over priced but final subscription figures look good considering the size of IPO.
To much liquidity with FIIs plus indian aviation is in infant stage with growth registered a year-on-year growth of 16.3% in domestic air passenger traffic in india, which is more than double the global growth of 6.5% and this going to be for next few decade. Take Auto industry few decade back in india and see what happened FIIs think same is going to happen in aviation industry in INDIA that is reason for such demand from FII.
In fact qatar airline offered big money for for 49% stake that is the kind of demand plus indigo is planning to 1000 air craft in decade so now you can put a picture what wealth creator the IPO could be
I think Qatar Airways and likes might be behind FII horsepower. Qatar Airways has been trying to enter into Indigo for quite sometime now and Indigo management rejected it. Now they might be entering via IPO route.