This is further to my Post # 107 & 96 in Acropetal Section.
I hope SBI will come out with another issue in next quarter too. Interest rates may remain high till then.
Highlights (as already informed earlier)
No tax rebate at the time of investment, There will not be any TDS but the interest earned will be taxable, Long term / short term capital gain on sale in market.
Dear Bangalore king,This analysis from First choice ipo analysis KA Prasanna is wrong since already the profit is 12.5 cr for the period ending Dec 2010.So it is expected to earn net profit of 17 cr & Post IPO equity its EPS will be more than 10 & Its is coming at 20 PE.This is in comparison to Page Industries which is at 32 PE & Maxwell Industries whic h is at 22 PE.So it is at reasonable valuations .Whether IPO will be a success or not remains to be seen.
At Rs 195-205, the issue is very expensive, considering the bloated equity before the IPO. Assuming that the company will report a PAT of Rs 12cr for FY 11 (up 20% over previous year), the EPS on the post issue equity of Rs 16.80cr will be around Rs 7/- and the PE will be around 28 which makes the IPO expensive. Most of the IPO funds will be spent on brand building, JV and Exclusive out lets, which may not add up to higher margins. Compared to the previous years, the margin in the year 2010, (IPO in mind) has improved substantially which is to be taken with a pinch of salt. IPO grade 3 by CARE.
Any monetary transactions should be proved by documentary evidence either for criminal offence or for recover in civil suits. For cheating offence, the hand loan may be taken up for consideration, but the commission of offence should be proved either by a eye witness, or an authoritative proof of accounts maintained towards the legally enforceable debt exclusively or that at the time of extending the loan, the lender might have paid such income tax including the amount lent for loan. that may be prove that you may have such huge amount with them to lend the loan and they have the capacity. Any transaction more than Rs.100 should be maintained by accounts or other records. In the absence, recovery becomes difficult.
As per the provisions of the income tax act any transaction above Rs. 20,000/- should be by cheque only and not otherwise. Based on the said provision, many judgments are being passed in Karanataka.
As per law, that is not considered as stock market transaction. It is a hand-loan. The owner has the right to demand their money-back (of course, without any interest or profit). It is just cheating case.
Even chit-funds are illegal. However, many people are lucky enough to get back their pricipal amount!
Hi Sreedhar, Glad to have the same name. But I am not that good at the market. I have been reading your's and other friends' comments and advices which are very useful and ofcourse profitable. We are expecting your valuble comments on this issue. One more thing I missed SBI Bonds issue, advise me if there any issue as good as SBI issue.
Lovable Lingeries Ltd Company Keshi he sub SBI Ke Pechhe Dore He SBI Closed Ho Gaya he Me re Dosto, Ab to Chhore SBI Ko Lovable Lingeries Ltd Company Ke bare me Batavo Yaaaaaaar??? Waht is your Fundamental of Company?