L&T IPOs are internal matter between the company and their investors to provide an exit route. So its using SEBI only for stock exchange listing. Its not worried about the pricing neither the listing whether its discount because they will make money as their acquisition price is very less. :-)
As per RHP, the diluted EPS for 2016 was 33.82. At asking price at higher band ,the P/E works out to 25.82.The weighted average P/E works out to 32.93. At asking price of 860 the P/E works out to 26.11. The industry average P/E is 25.30. RONW for LTT is 38.85% against Tata Elxsi 40.1%. and Cyient 17.4%. As such, the issue price of Rs.860 is very aggressive and seems to be leveraging on the parents name and ability to help it in bringing in more turnover and profits in the years to come. The current GMP appears to be fair, but will it translate in to listing price is the million dollar question taking in to account parents listing of past 2 IPOs which were at a discount. In conclusion it can be said that LTT is in a good profitable business and can be a portfolio stock in the long term. Market risk is there for every IPO, but the risk in this IPO appear to be elevated in my opinion. This issue is for risk takers who are willing to be satisfied with a small ROC with chances of losing part of their capital.
Investor can subscribe to this IPO. I can not give you any assurity of listing gain but I can see long term prospectus are very good, If you think it will list negative than you can purchase this stock from market and keep for long term.
History will change and u will admit it.LT group will not disappoint you again and again..
Mr. Anil Manibhai Naik(with age of 74 yr 90 days) won''t disappoint YOU , he will hire guys(like operator) that can do grand listing like anything and u will see with double sized eye at LTT price cross 999 on listing day itself..LT will use SAM,DAM,DAND,BHED but will do blockbuster listing.
Correction Global IT Slowdown First Infosys correct after Mindtree after TCS Today then bad new news daily...............................
Jab market me correction aane vala hota he Bad news ko lagatar market discount karta he Tab market me over confidance aa ja ta he Correction ahed.............Beware.............
Average cost of acquisition of equity shares for the promoterper share is Rs. 103.25 In June 2016 it rights issue per shares at a price of Rs. 281 now get public 850 to 860
Bid/Offer Programme BID/OFFER OPENS ON September 12, 2016 (Monday) BID/OFFER CLOSES ON September 15, 2016 (Thursday)
Finalization of Basis of Allotment with the Designated Stock Exchange On or about September 20, 2016
Initiation of refunds (if any, for Anchor Investors)/unblocking of funds from ASBA Account On or about September 21, 2016
Credit of Equity Shares to demat accounts of Allottees On or about September 22, 2016
Commencement of trading of the Equity Shares on the Stock Exchanges On or about September 23, 2016
Bid/Offer Period (except the Bid/Offer Closing Date) Submission and Revision in Bids Only between 10.00 a.m. and 5.00 p.m. (Indian Standard Time (“ISTâ€)
Bid/Offer Closing Date Submission and Revision in Bids Only between 10.00 a.m. and 3.00 p.m. IST
Still amazing that when l&t info was rumored ipo price at 800 rs then gmp was 120 rs ,but now hovering 640/650 ,gmp pundits should be awake now or start different job