Going by the subscription figures, issue is a sure short flop. Do you have any doubt ? May be you are frustrated for having applied 8 lots and can't do any thing now but to wait and pray. Alas !
You dont seem to have enough knowledge or experience of IPO's or stock market and how they operate lest you won't have quoted the example of Reliance Power only. This is only one of few examples.Check out on hundreds of IPO's going at discount post listing, which did not have high subscription figures. And even the average ones faring very well due to high subsricption figures, meaning good appetite for investors.
Good quality IPO with poor response (like Oil India) may do very well in long run. But average quality IPO's like this one(with expensive valuation, as very well analyzed by SJ)may quote at discount.
May God give you patience to hold for long run or courage to book loss on your 8 lots. But my good luck for any possible listing gains, if any !
Latest subsrciption figures
As on 15-Sep-2010 14:00:00 IST
Total Issue Size 123103448 Total Bids Received 118112200 Total Bids Received at Cut-off Price 26381200 No. of times issue is subscribed 0.96 Graph Logic
Setuji the persons like blackstone have purchased in moser baer because it is trading almost half at book value not demanding 2times to book value.this company has limited down risk and also there is not possibility of 30 to 40/.loss . opening loss as in the case of indosolar.But if somebody wants to go he can apply there is huge fii interest in this counter.Princeeeeeeeeeee you can also run before the person who is applying in this after seeing FII interest.
BUT IS ASKING 2 TIMES BOOK FOR 260 MW IN 2011 CAPACITY
MOSER BAER'S SUBSIDARY MOSER BAER PV IS QOTING AT 0.5 TIMES INSTALLED CAPACITY
Recently big investors like IDFC SSKI BLACKSTONE BOUGHT STAKE IN ITS PV BUSINESS
THAT VALUES ITS PV BUSINESS AT 6000 CRORE
IT IS PLANNING TO LIST ITS SOLAR SUBSIDARY IN NEXT 2 YEARS
mOSER BAER HAS 93% STAKE IN MOSER BAER SOLAR pv
mOSER BAER MARKET CAP IS 1500 CRORE
its subsidary is valued at 6000 crore alone
it will give positive results in next quarter and contribute more than 50% of moser baer's revenues
SO AVOID INDO SOLAR
AND BUY MOSER BAER
I WILL GIVE DETAILED ANALYSIS OF MOSER BAER TONIGHT
Solar energy ha great future.
Government has made it compulsory for state power companies to build solar energy capcaities
The national solar mission is for 20 GW by 2020
today solar capacity is just 2 gw
it will increase 10 times in 10 years. That to compulsory by government.
You can imagine what will be the price of Moser baer..? _________________
DISCLAIMER: Me and my clients have added moser aer at 60 rs. recently for long term. My analysis is my own. Boarders are adviced to do their own homework. i am not liable and hence should not be blamed if people miss oppurtunities
I have just seen your message describing the Indosolar issue as a flop, merely by your going by the data that upto 12.00 noon today, the subscription was only 0.48 times.
If the number of times that an IPO is subscribed in comparison to its size is the only consideration to consider whether it is a good or bad IPO, let me remind you of the fate that befell very very large number of investors, especially retail investors, in the case of the Reliance Power IPO that was oversubscribed several times over. a couple of years ago. Investors, even many seeasoned brokers who financed some investors, did not merely lose money but even went bankrupt!
That IPO, in which the promoters investment was @ Rs.17/- per share, and was priced Rs.430/- was hyped to list @Rs.900/- or more, but fell flat at around Rs.300/- on listing. It had sucked in an astronomical amount of Rs.7.50 lakh crores, and the stock market general collapse was triggered by that gamble! Even the bonus offer that was desperately engineered as a slight of hand, to sustain investor morale could not be of much help.
Please do not use simplistic thinking and mislead investors to become pessimistic. I am more than convinved now that my decision to invest in 8 lots of this IPO is sound.
Indosolar is a company that is not at all new to technologies dealing with generation of solar electricity. It does not directly assemble and sell systems, but has intense specialisation in designing, manufacturing and exporting photovoltiac cells. Its customers are those who make sub systems for catering to the requirement of the rapidly growing market catered for by specialist units assembling and manufacturing solar energy systems.
It has an excellent track record of exports to several sophisticated countries and that list is growing, reason why it is going in for expansion through funds being mobilised through this IPO.
The management of the company has a reputation for being professional and competent.
In my opinion, the chances of shares allotted in this IPO faring well in the market after listing, are bright.
I have just applied for 8 full lots and advice retail investors to consider this a safe bet and invest in it.
FLOP ISSUE (SEE FIGURES BELOW FROM NSE WEBSITE) - DON'T SUBSCRIBE
INDOSOLAR LIMITED - Graphical display of bids received * (* indicates bids position and not necessarily the subscription to the issue) As on 15-Sep-2010 12:00:00 IST
Cumulative Demand (no. of shares in lakhs) Bid Price (Rs.)
Note: Cumulative bid quantity at each price point includes the quantity bid at that relevant price point and all valid bids at the next higher price point. The graph is updated every hour.
Total Issue Size 123103448 Total Bids Received 59003600 Total Bids Received at Cut-off Price 18041200 No. of times issue is subscribed 0.48
For retail investor these are best bet (for short term - i am not qualified enough for long term analysis) reasons 1) Largest issue size of current ipo opened 2) No eurphoria among analysts and investing community both the above point increase the chance of allotmnet I "feel" that this ipo is very unlikely list at discount.
Even if open 1 rs higher then probably this will the highest day one return till now which 3000 assuming full allotment.
Of course there is risk , but at this point and time the risk- reward ratio is still favorable.
Grey MArket dropped to Rs 1 to Rs 1.50. Very risky affair. My advice is don't apply. Valuation are double than the existing players like Euro Multivision. May trade in discount from tomorrow in Grey MArket.