The IPO priced in the band of Rs.725-825 does offer scope for appreciation given the long term business traction. At the upper band, the NBFC is priced at a PE of 33.7x its FY07 consolidated diluted EPS of Rs.24.5 and a price to book value of 3.2x. We recommend investors to “Subscribe” the issue.
avoide mosfl, because it has done private placement to p/e six earlier at the rate of 519 and it is offreing us at 825, so please avoide avoide avoide the ipo.
Motilal Oswal Financial Services is entering the capital market on 20th August, 2007 with a public issue of 29.83 lakh equity shares of Rs.5 each in the band of Rs.725 to Rs.825 per share. Range of Rs.100 for the price band is too high. Maybe, the high price tag is to enable BRLM to discover price safely, in this volatile market?
Motilal Oswal is a prominent name in the stock broking community and lately this sector had caught the investor’s fancy due to rich valuations being given by the overseas investors, to financial companies in India.
Post issue, equity of the company would be Rs.14.20 crores, relatively low equity base. At price of Rs.825, the market capitalization would be about Rs.2,350 crores. Since, present income of the company is mainly from broking, which is becoming competitive, the valuation seems a bit stretched. The company has recently ventured into investment banking and venture capital. Post issue, the company would be expanding its margin funding to over Rs.200 crores, which is presently at about Rs.88 crores to about 585 clients. However, it has become compulsory for the broking houses to provide margin finance to its customers to enable it to earn brokerage, PMS fee and advisory fee. With margin funding in place, the brokerage houses are able to earn more than 60% of its brokerage.
The company has estimated requirement of Rs.195 crores of which, Rs.110 crores is for margin funding. Balance is for working capital and for office premises. All this is to be entirely financed from the proposed issue.
However, considering the strong brand equity, consistent track record, low equity base and recent diversification in venture capital and investment banking, investment can be contemplated. Knowledge, commitment and accountability of the promoters, would keep prospective investors’ interest in mind.
ye sab grey market bakvas hai omnitech ka primioum 220 ka th bad me 55 ka ho gaya take ka 450 tha bad me 170 ho gaya es ka bhi abhi 185 hai 5 din ke bad 30 rs ho gayega please avoid this ipo
remember one thing friends this ipo is related to brokerage house which is directly related to share trading and will not thus allow the share to fall much after listing and always ensure that it trades significanty above issue price they are doing all this for years thus do apply for this ipo. it is good bet in bearish market
dear borders apply for this ipo u will get extraordinary listing gain.i can assure u tomorrow market will open in positive mode and it would subscribe substaintially.happy investing.
I am planning to buy UNITECH shares. Can you please tell if the shares I buy before the 31-Aug-2007 (the day when shares will split) will be split as well.
dear borders,motilal oswal ipo is a good issue today's gray market premium is 250 rs .if market sentiments remains negative the issue will subscribe 5 to 7 timesin retail.qib portion is subscribed by fii's still mutual funds are on wait n watch policy.retailers are waiting for last day. invest donot worry.happy investing.
ET MUMBAI: Reliance Money has emerged as the top brokerage house in terms of online security and cost effectiveness, while Motilal Oswal leads as the most research driven stock trading platform, a survey says.
According to an online survey conducted by US-based Starcom Mediavest to study trends on investor's choice of broking firm, Anil Dhirubhai Ambani Group firm Reliance Money was voted as the top platform in terms of security and cost effectiveness.
Motilal Oswal led the general perception about being the most research driven stock trading player, while ICICI Direct was considered as the most accessible by the respondents, the survey said.
In terms of respondent's perception of best online security, Reliance Money received 47% votes followed by ICICI Direct with 20% endorsements.
Although Reliance Money leads the tally on online security, it is more favoured by business owners (54%) than retired individuals (29%), the survey showed.
For cost-effectiveness in stock trading, more than half (54%) believe that Reliance Money is the best followed by 5paise.com, which got 15% votes.
Meanwhile, just 7% respondents rated ICICI Direct as cost effective.
Motilal Oswal found favour with 34% respondents for being the most research driven stock trading player.