L&T Technology Services Ltd IPO Message Board (Page 25)

I agree with Pinky jain ,
IPO Watcher is against the company as he was an employee, and was not given stock option

Chem cho is leading broker in BSE exchange , and his views are based , along with market opinion

Last ipo investors earn huge against your advices and exit near 350 types ~~


4. Uchit Patel Aug 1, 2016 11:31:50 AM IST Reply
S P Apparels Ltd IPO

Please stay away from this IPO.

I am always go by no.s and facts. I am not playing gamble. S P Apparels no.s were not convinced me at the time of IPO. I always check management, no. s, facts, business model etc. before investing single penny of my earnings.

If I want to play gamble, better I will buy lotto or go to casino where I will earn much more.

small investor invest in IPO because they think they will get listing benefit.but in l&T last issue they no given this benefit .
May be this is one and only one reason people avoid this.
small investor making profit on listing gain. listing gain in other IPO in fast few month is more then this.

not fast i mean last

But Sir, cos. like L&T hasn''t really move anywhere during last 6 years with strong orders in pipeline. So how can one have expectations.

Roy Sir,

In last 6 years L & T shows low of 650 and high of 1800 and today it is at 1500. You are still searching momentum. Also company gave bonus 1:2 in 2013 - clear profit of 50%. L & T always gave real bonus. Real bonus means when company''s books shows excellent no.s and company is sure within some time stock price reaches the same level after ex-bonus date price. This is really hard to understand real bonus theory for ordinary investor. You will find many companies who gave bogus bonus and stock price never reaches previous level after ex-bonus price i.e Reliance.

Uchit Patel sir

Yes you''re right. Bajaj finance was around 11,500 yesterday. It is having split of 1:5 and bonus also.

Today it has been split and trading at 1150 range per share. Do you think it will be a real bonus company ? By real bonus, I mean what you said about company share reaching the previous level of 11500?

I also did not understand one point. Split 1:5 means it will be around 2800 (11500 divided by 5) today, but its 1150!!! I m ordinary investor like u said and difficult for me to understand bonus theory.

Shivajee,

Split is different that bonus. Don''t get confused.

In split no. of shares are increases depending on ratio 1:5 or 1:10 or 1:2. Normally company splits their shares when it''s price reaches on very high and small investor starts ignoring it because of high price. Another motive of company is to split share and reduce price to attract small investors to buy that share. If more and more small investors are buying any share then automatically it''s price is going up. In split their is no financial impact on company books like share capital. Only one thing is affected is no. of shares increases. At the same time face value is reduced from 10 to 2, 10 to 1 or 10 to 5.

In bonus we can see more impact on books. Share capital is increases with no. of shares. Share capital is very important for company''s book keeping and analysis. Many times motive is also same as split. Bonus is not popular in foreign countries like US. Split is more popular there. In bonus face value remains same. Company needs to arrange funds from reserve or something else to increase capital and give bonus to existing shareholders.

In Bajaj Finance company declared split and bonus at the same time. Split is 1 to 5 and bonus is 1 to 1 on split share. It was on 11500 and split to 5 so price is 11500/5 = 2300.
Also bonus 1 to 1 so price is 2300/2 = 1150. Total no. shares after split = 5 and after bonus = 5*2 = 10. Small up-down possible on ex date. I need to do more study to find how much upside left in this company after bonus and split. Also how long it will take to reach same level.

Simple calculation if 1 to 1 bonus then share price remains half on ex bonus. If 10 to 1 split then share price remains one tenth on ex bonus. If 10 to 5 split then share price remains half on ex bonus. If 10 to 2 split then share price remains one fifth on ex bonus.

I was thinking for a long time that if a company gives bonus, then our asset value will increase.
For eg. If company A''s share price = Rs. 200 (Asset value)
If it announced bonus of 1:1= Rs. 200+ 200 (bonus share) = Rs. 400 (asset value).

So I thought if i got one bajaj fin 11500, they will give one bonus share equal to same amount so that asset value becomes Rs. 23000. But the fact is asset value is the same.Rs.11500.
I heard news that infosys and wipro shareholders became rich by dividends and bonus shares. In this case of bajaj finance I am astonished, how can people become rich by bonus (no use).

Do you know any sure shot multibagger stock sir for 6 months 12 months or 1-2 years? for eg, if I invest Rs. 10000, it should become Rs 100000?