Muthoot Finance Ltd IPO Message Board (Page 27)

Seenuipo,

The loans already provided by muthoot and also among them if u take some defaulters gold @ loan price and current price then Muthoot will have an edge if price of gold increases.
The other side of this type of NBFC's functioning is They will issue a paper notice when ever a loan gets defaulted and the inside employees pass information about a jewel which is about to come to auction to there counterparts which gets a comparatively low price than its true value. Then NBFC takes there loan amount along with interest and returns the extra money if exists to the loan defaulter. Last week there was a small advt from one of the branches in secunderabad.
So we should be happy if banks start this business as transparency will be more.

Disc: i expect to get good number of Muthoot shares with my 5 full applications and so will be happy to see it listing with good premium.So nothing against the company.

Hello bangalore king,
Muthoot finace will not stock the gold and sell at higher prices.This is business of Joyalukas or kalyan or malabar or GRT.Muthoot will hold the gold of investors as a pledge only.The intrest is only the income.

Asking price already figured in, in the premium paid as 6 times book value where as most of the public sector banks trading at book value.

Soon after later this gold lending will be hijacked by public or private banks where more safety for their gold.(you may observing lot of cutouts and wall posters are already diplayed most banks).

Only thing is banks are to be regularise this business and stop the processing fee.

Then this busineess will flourish in banking system and loosing monopoly by the muthoot and manappuram.

Ravi(BanaloreKing),
Thannks for posting a good informative link.
I had seen ur comments in this board which most of the times i agree, But Regarding Muthoot i slightly differ withur comment. If one gets a price of somewhere in the range of 225-250. I am extrapolating it slightly compared to GMP,then i think we can sell it as the comparison in P/BV of Mannapuram and Muthoot skews towards the former. The Latest results of Mannapuram is quite good and apart from that they declared Bonus in the ratio of 1:1 which shows there confidence of growing further on a larger equity base.Moreover the capping of interest rates by Supreme court is going to come anytime in near future.So my point is if the boarders hold 4 to 5 applications then they should not hold keeping in mind scripts like Jubiliant(Saharanpuri ji said) but it may go in SKS way also.
Hope u agree

what is the allotment date and listing date of muhoot finance and whats the gmp f dis???

gold at 23K and see this article on today's ET

http://economictimes.indiatimes.com/news/news-by-company/corporate-trends/can-muthoot-group-flourish-its-gold-business-well-in-the-north/articleshow/8129624.cms

Don't sell in hurry.

It is considered auspicious to invest in Gold on the occasion of Akshya Tritiya- on 6th May.

Muthoot an indirect investment against gold is listing on this SHUBH occasion.

Should prove lucky for investors.

Be ready for :

ALLOTMENT on - 2nd MAY - MONDAY

LISTING on - 5th MAY - THURSDAY

According to my friends who are situated in Kerala Muthoot George group is very very big and trustworthy and not like Muthoot Pappachan Group. It cannot be compared with Manappuram in terms of trust, confidence, service, brand name etc. Thus the pe of manappuram cannot be compared with muthoot and it should rule a far more higher pe than manappuram. I agree with saharanpuri that it can be another jubliant for the longterm investors.

Best of luck to all those have applied.

Disc: I applied 2 full applications in retail.

mouthoo fin listing @ 255 to 265 rs and tuch 285 to 290

So friends I was allotted 3000 shares of Jubilant Food @145 last year & was stupid enough to sell it once i got 30 ,50, 80 & 100% gain.I thought I got a fantastic return. Today the rate is touching 750 . Just see who was smart Mr market or me.

So lesson to be learnt is dont be in a hurry to sell unique concept stocks like Jubilant Food,Lovable Lingeries, AIA engg, Tulip telecom, Page Ind, Zydus wellness,

Why this is iportant is wrt Muthoot Finance.This is another concept stock .India is the biggest hoarder of Gold Jewellery in the world & business potential for cos like Muthoot is huge.This will be teh Jubilant food of 2011.Some stocks are meant to be hold for long & Muthoot is one such stock in ,mmy opinion.

Discl- have holding of 1700 shares @ 193 & intend to hold for long.

Views Invited

      

Grey mkt premium lures institutions to raise bids for Muthoot IPO
Somasroy Chakraborty & Niladri Bhattacharya / Mumbai April 30, 2011, 0:46 IST

It is not just retail investors who are getting cues from the grey market for initial public offers (IPO) of companies. A good premium in the grey market is influencing the decisions of big institutional investors, too.

Grey market premium appears to have convinced domestic institutional bidders to raise their bids for the IPO of Muthoot Finance in the 11th hour, as they scrambled to secure a meaningful allocation from the share issue, investment bankers said.

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“Initially, the average bid size from institutional investors was Rs 75-100 crore. This, however, changed when grey market estimates showed shares were likely to be listed at a premium of Rs 30 on the upper end of the price bank,” said an investment banker.

Adding: “On the last day, a number of institutions raised their bids over Rs 300 crore as they feared they will not be able to corner adequate shares from the issue,” the banker said.

The price band of Muthoot Finance’s IPO was kept at Rs 160-175 per share.

India’s third-largest private sector lender, Axis Bank has put in a bid of Rs 450 crore. The State Bank of India (SBI), the country’s largest commercial bank, has also put in a bid of around Rs 350 crore.

Fund houses including SBI Mutual Fund, HDFC Mutual Fund and IDFC Mutual Fund, have also bid in excess of Rs 200 crore, investment bankers said.

“As the issue progressed and the book got subscribed by more than five times, institutional investors nearly doubled their exposure,” another banker said.

The IPO of the gold loan company opened on April 18 and closed on April 20 for qualified institutional buyers. For other investors including retail the issue was open till April 21. Shares allotted for institutional investors were over-subscribed 25.01 times.

ICICI Securities and Kotak Mahindra Capital are the book running lead managers to the issue. HDFC Bank is the co-book running lead manager.

“The price of the IPO was kept relatively attractive, which has led to this phenomenal subscription,” said Rakesh Singh, head of investment banking of HDFC Bank. He, did not offer any more details as HDFC Bank was managing this issue.

According to Muthoot Finance’s IPO prospectus, up to 50 per cent of the issue will be available for allocation to qualified institutional buyers on a proportionate basis, of which five per cent, excluding anchor investors’ portion, will be available for allocation to mutual funds.

Low risk business,
High growth Business,
High credibility of Muthoot finance,
No Default in Repayment of loan and other interest payment in the past,
With The IPO funds to the tune of rs.900/- crore further growth bullish.

Dear all

We can expect minimum 10% from muthoot and 20% is quite possible as per gmp. more then 20% is depends on market condition. Market can give any valuation to the stock. As this one is a no 1 company in gold financing so we can expect 35 to 40%. so go dreaming.

muthoot may list around 202 & touch intra day high 222(ascend on its own merit/inflated gold price)
Servlakshmi paper may list 36 and may touch 48 (help of operator)
Paramount package may list around 40 and may touch 47 (help of operator)
Innovative may list around 128 and may touch intraday high 132(own merit)
Future venture may list around 11.75 may touch intraday low 8.75

SAB KE MAN MEIN LADDU PHOOT RAHEN HAIN ?

JYADA UNCHE KHAB MAT DEKHNA BHAI , AISA NA HO KE JAB RESULT NIKALE TO PHISHH.......

MUTHOOT FIN A VERY VOLATILE SCRIP IN GREAY MKT


AT PRESENT 29/30

DEAR SONPAL

IN WHICH CITY THE GMP OF MUTHOOT IS RS. 55 PLEASE TELL ME

SGUPTA,

I am from Hyderabad and i don't have any information about Grey market price in this city.Generally i visit a couple of sites apart from Chittorgarh for GMP. i didn't said abt GMP of Rs 55.I just replied to Sonpal that it may list around 210-225 looking at the current GMP which i heard last was 32.

DEAR N KUMAR

I RESIDE IN JAIPUR AND THIS IS THE CURRENT GMP IN JAIPUR, PLEASE ALSO GIVE YOUR CITY NAME WHERE THE PREMIUM OF MUTHOOT IS RS. 55

SGUPTA,

sir if u dont matter can you let us know the city in which ur Source resides. Coz Generally it trades @ different rates in different cities like Rajkot, Vadodara, Mumbai etc but the price difference will not be huge.