this has gone down mainly because of panic selling by retail invester due to lack of conviction. still there is the silver lining that it has held Rs. 50 level very strongly. l&t has never let their investors down thats why they gave it at Rs. 52 while anchor investors has been alloated at 55-56. strange market is this.. issues like inventure gets double but l&t which is a grade 5 ipo gets goes in discount. Poor retail investors gets trapped in junk issues on higher level and looses their capital and they also do not earn in ipo's of good companies except few smart players like sreedhar on this board who earns even in junk ipo's else its pain pain and pain for small retail investors. disclaimer: liquidated my position at 52.25 looking to buy it again on tuesday at sub 50 levels.
Current global risk aversion due to US downgrading has lot of bearing on this listing otherwise good brand could have given 4-5 Rs listing gain.EPS is hardly reliable tool for young and growing companies it is always high as nobody wants to miss the bus.It is CAGR which is important If company is growing year over year people are willing to pay high at PE.It is good practice to apply for all IPOs which has high pedigree,good branded product,name.Once in a while issue may not work but strategy will fetch handsome returns.See Jubilant,Birla medspa,Talwarkars,mahindra holidays,lovable .All have given good listing gains. Apply in full in 3-4 accounts and you may convert some of your shares for free (booking profits in part)I will keep applying such issues doesn't matter it didn't work today.I have sold all my shares at 51-52 and freed the amount
I have told on the second subscription day that it will go in discount. Yarr, investor should have seen PE, EPS and compare it with listing company. REC, PFC, R-capital etc. financial company are available at 7 to 9 PE, where LTFHL are available at so higher PE. So company select lower price band. But at 52/- it is still costly in term of earning price ration. LTFHL chodo Muthoot pakdo.
Muthoot Finance Ltd. post quarterly 5 Rs. earning per share. If we assume that same EPS will be continue (in normal condition it will be sure increase) then yearly EPS become 20 Rs. Current PE multiple is 15.00 if it remain continue then 15 x 20 = 300 rate is normal for it. Today's closing price is around 188/- from current level U can earn good return.
Good IPOs are not giving good profit. From past two years, IPO game has changed.
Apply for junk IPOs. Instead of 2 lac, you can put Rs.20,000. It could double in a week's time! If breaches issue prices, you could loose around Rs.1,000.
This is information age. Buying & holding was in industrial age (our father's era). In information age, companies make or break within a decade.
775, CHD, I have not lost my shirt. I have not lost anything by shorting though I did not gain. But by following Sreedhar's suggestion of shorting L&T in futures, I have made enough money to buy a shirt and a pants.
793. SkDash| Link| Bookmark|
August 12, 2011 4:19:09 PM
Top Contributor (1000+ Posts, 200+ Likes)
then u should not have applied for this if you are expecting listing gains.
In the recent past Ipos some gave good listing gains while many listed in negative. You should be happy that in this type of crash market situation, you are not making major loss with todays listing..!!
782. PSR I don't want to be expert, but you are saying that you are smarter than those people who had withdrawn as you have save the cost of scanning/fax.
From subscription figure itself suggests that its never going to list in premium hence people like me had withdrawn. stock in opening trade available at 50 rs kind of level which is no way listing gain. in fact you have listing loss of 2 rs.
After that it's market trade where one can stand long/short as per his own thinking. in your case you go long to wipe your 2 rs loss & it's came. that's why you are able to write this. but if it goes downward than ........
If it lists with premium than only you can say you are smarter & me not.