InterGlobe Aviation Ltd IPO Message Board (Page 13)

Eevn if market condition reamin good and airline industry would not have setback in coming months even then the maimum profit you can earn is 50*15=750 rs . now the other side if there is turnaround and the valuaton does not support 32000 cr for intergloabe , the kind of money they are spending on advt, the loss will be 100 rs which is 1500 and on long run 300*15=4500. why do you want to look for such companies where valuation is high , industry concerns, no intereest among investors in this sector. simply would say stay away as better options are available.

Well said.. this is very risky proposition.. The risk reward ratio is not attractive. If u r a retail investor, just think twice before putting in your hard earned money.. Also the fact that QIBs were asked to subscribe in the first hour on day-1 suggests that something is fishy. Retail to better avoid this..

Well put.

yeah comapny chor hai and director ghosh making the fool bhai sell kar ke chalna.otherwise bear the losses

QIB can withdraw their application before the end of closure of IPO.

Every IPO QIB subscribed last day. But this time QIB subscribed 1st day 1.14 time at 1.00 p.m. This show QIB wants to fool retailers.

right ...i agree with you...don''t believe on QIB..

What so great if get subscribed in qib protion. NHPC subscribed 6 times on day 1 and 29 times total never stayed above issue price on day 1 and is available at half price after 5 years. open your eyes.
check the airline IPO perfromance. its always better when a ipo comes to compare with stocks in same sector and perfromance of ipo. check ursef for perfromance of jet airways, kingfisher. airline stocks in india are wealth destroyer.
see performance of logistics sector the best performing sector, pharma,IT. i would stay away from indigo and apply for SH kelkar.

just make sure you understand and future prospect of company. indigo fair value would come to 300 rs which is 10 p/e and that wil be available in 1 year.

100% agree

Why we should not invest is becamore than highly prices, what you will gain? The bid lot is small. If Retail portion gets subscribed by 2 times, then each applicant will get 1 lot. Even if it open a premium of 20-50/- the maximum gain will be 400-700. Why you want to break your head. Better to AVOID.

Already, about 28% of the Net Issue is subscribed by anchor investors at a cap price of 765, which is a great positive. The regulatory cap for the anchor investor category is 30% of the net issue size.
If QIB subscription is above 5-6 times the number of shares now on offer in the category (i. e. 8522935), in my opinion it would be a good bet, considering the huge size of the IPO.

Following is the complete issue structure, which may be helpful for some of you to analyse the demand and take subscription decision:

Category       No of Shares       %      
QIB - Anchor       10,876,215      28.03%      Alloted
QIB - Exchange       8,522,935      21.97%      On NSE/BSE website
NII       5,819,746      15.00%      On NSE/BSE website
RI       13,579,407      35.00%      On NSE/BSE website
Total Net Issue       38,798,303      100%      
Employee       2,200,000             Offer
Total on Exchange 30,122,088             On NSE/BSE website
Total Issue       40,998,303            

Issue Cap Price       765.00            
Issue size@765 (in Rs cr) 3,136.37

Hi,
Request all the investors to stay away from IPO and to teach good lesson to promoters.

Thanks & Regards
Sagar dasa

QIB portion is fully subscribed by FII at 11 am

Huge demand from Anchor allocation. One can bet from listing gain. Keeping in view of airline industry, there is no growth for long term but can bet for short term. I am saying it on sentimental analysis not technical. So do your technical analysis before investing.

Airline is able to show profit just becaof sunk crude prices. Once crude regains momentum these airlines will bleed badly. So don''t go by the current picture. It''s a deja vu.

InterGlobe Aviation Ltd, owner of India’s most profitable airline IndiGo, on Monday received demand for around eight times the shares it offered to so-called anchor investors, including domestic and foreign institutions, a day before the start of a keenly watched initial public offering (IPO).

The company raised Rs.832 crore via the anchor investor allocation, also known as the anchor book, selling shares at Rs.765 apiece, the upper end of the Rs.700-765 price band. The company used its discretion to lower the amount on offer from around Rs.1,000 crore.

The anchor book is that portion of the IPO bankers can allot to institutional investors on a discretionary basis. Anchor-book subscription opens a day before the launch of an IPO and acts as an indicator of institutional investor interest.

Subscribers to the anchor book include investors such as Harvard University Endowment Fund, Goldman Sachs Group Inc., Ruane Cunniff & Goldfarb Inc., Fidelity Investments, BlackRock Inc., Dutch pension fund APG and GIC Pte. Ltd, Singapore’s sovereign wealth fund. Domestic investors include HDFC Mutual Fund and Sundaram Mutual Fund.

“The anchor book for IndiGo witnessed a very strong demand of eight times the book size, especially from foreign institutional investors, which have subscribed to a majority of the book,” a person aware of the details of the sale said on condition of anonymity.

Why the ASBA applications are not available for these IPOs?

Hi Aajay,
You can apply for ASBA during the period which the issue is open. For IndiGo IPO kindly check tomorrow after 10:30 AM.

Thanks.

this IPO is for them who is having excess amount of money and can wait for 1-2 years if there will be no listing gains.

REMEMBER PERFORMANCE OF ALL 3000 CRORE IPO HAVE LISTED AT DISCOUNT

NHPC 3000 Crore+ discount . even after 6 years not able to reach issue price
DLF- Quoting at 60% discount
reliance power -10000 crore- listed at discount
even big names have been unable to sustain the price

they are demanding market cap of 32000 crore for airline stocks. ufff
even dlf is not at that market cap.
better to apply on good stocks ,safe betsnot asking too much market cap and good industry.

buy these stocks and you will be happy.
stocks- NBCC, VRL logistic, Wonderlay ,lloyd electric,ambition mica,cox and kings,eros international. these are stocks that will cover all sectors and will be investors fancy.

Guys remember my words. airline ipo shoul dbe boycot. you never know how the dollar, oil and their passengers would behave. Any slowdown would impact it heavily.
its a large issue and they have taken out all cash from the bookand paid to greedy promoters.why do you want to risk you money in such a bad ipo. i see this getting undersubscribed in retail and HNi and will list at 10% discount. remeber cafe cofee day is a very good long term story. even if you go to cafe cofee day i see multiple outlets have heavy rush. food and consumpution story in india is very good. i see cafe cofee day giving 30% retrun in 1 year and indigo being 30% discount to issue price in 1 year. now decide urself.

http://timesofindia.indiatimes.com/business/india-business/Surtis-campaign-to-boycott-IndiGo-IPO/articleshow/49515847.cms

In cnbc interview mr gosh of indigo said that indigo managment is not chalak mgmt but it is thoughtful mgt.
But its body language seems to be chalak when he is quoting this.

True...I agree with you on this 110%

Airlines company increses fair hike during pick session so as they did in ipo too...goair too coming with ipo to wash hands in river ganga ...

LOL

IndiGo promoters Rakesh Gangwal, Rahul Bhatia defend move to pay out dividend ahead of IPO

Read more at:
http://economictimes.indiatimes.com/articleshow/49498839.cms?intenttarget=no&utm_source=newsletter&utm_medium=email&utm_campaign=Dailynewsletter&ncode=a443e44c3ba909adb028da48ac142b98&utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Please APPLY full amount i.e. Rs.2,00,000/- application as retail investors are expected to get allotted accordingly. Don''t go for one or two lot application in expectation of over subscription. Mind it, its a huge issue size and retail participation has been apprehensive. Grey market is offering Rs.2,300/- for single application of Rs.2,00,000/-

Everyone is analyzing debt in the wrong way. Indigo uses operating lease model. Therefore you have to take their annual operating lease payment, and capitalize it using average tenure. Using June quarter lease rental of Rs 600 crores, and then using average tenure of 7 years, the total debt actually comes to Rs 17000 crores. PLEASE DO NOT MAKE MISTAKE OF USING ACTUAL DEBT ON BALANCE SHEET.

very good point people should consider however nothing wrong on part on indigo not showing in books bcoz operating lease model allows it.... in layman term i buy a car then sell the car to my friend and pay rent for using it with a grauntee that i will pay rent if for any reason i do not pay the rent i have to pay my friend cost of the car....this keeps the balance sheet light