Muthoot Finance Ltd IPO Message Board (Page 44)

As for Q1B, the issue closes 1 day before.
Better to wait and then apply on last day.

MUTHOOT FINANCE..........

PREMIUM IS FALLING DOWN..............18/20

APPLICATION NO BUYER

financialanalyst,
Its not possible in Kotak, but possible in SBI. I apply for myself from Kotak and third party from SBI.

124. financialanalyst,

Its possible, I was using same procedure for 2 of our accounts from corporation bank ASBA, no issues upto now and allotments are happening.

Srini.

@5PM, overall subscription is 16%

Total Issue Size 43775000
Total Bids Received 7100520
Total Bids Received at Cut-off Price 1247440
No. of times issue is subscribed 0.16

@Financialanalyst

That is definitely possible. I have applied from my SBI bank a/c thro online ASBA - in both my DP a/c as well as my friends's DP a/c

@financialanalyst

you need to have separate demat account and banking account for your parents. I have opened demat accounts and banking account in my parents name. Whenever u want to apply for an IPO, you can transfer funds from your banking account to your parents banking account and apply from their demat account/trading account.

QUERY REGARDING ASBA

Hi,

I have a query regarding ASBA application , if any of the experts in the forum can throw some light on it !!

I want to apply for my parents application by using ASBA from my account , is that possible? that is the DP details would be of my parents and the bank account details would be mine, so basically amount would be blocked from my bank account, is that possible ??

I enquired from Kotak bank and they said it is not possible and then I inquired from the Registrar of Companies , Linkintime and they said its possible, differing view points !! I basically feel it should be possible..

If any body has earlied applied for third party/relatives through ASBA in your account , please reply.

Regards,
Financialanalyst

Muthoot Finance Ltd. is offering 5.15 Cr. equity shares (face value of Rs. 10 each) through the IPO at a price band of Rs. 160-175.

According to analysis, we can expect that the company will continue to grow its revenue; but margins will most likely come down in near future due to increasing borrowing costs and increasing competition. Considering the growth prospects, we can expect the company to grow its book value at a rate of ~20% on an average, in the coming years. Also, it can be expected to trade at an PBV multiple of 3 going forward. At the current price band, the issue is priced at a PBV band of 4.04 and 4.13. Thus, at the IPO price band of Rs. 160- 175, the stock is almost fully priced – available at just 9 -10% discount to its right value. But, It is always better to invest in a company at an attractive discount (30-50%) to its right value. Considering this, we advice retail investors to avoid subscribing to the issue.

K RATE: 5500 SHARE PRICE 20/20.50 BIG DIFF......

Vishal R

That is an information for me. Thanks.

Dont Apply...inside story says...

my broker called me and told that premium has decreased to 18 rupees. kostak rate is back to 2400 he told me that in such market situation avoid the issue. in paramount there is some operator involved so i might apply for it. pl suggest

As of 2 PM, Overall subscription: 0.13 i.e 13%.

Total Issue Size 43775000
Total Bids Received 5724680
Total Bids Received at Cut-off Price 627520
No. of times issue is subscribed 0.13

So, I read the story...
But not getting any conclusion !!

Please tell me whether GO or NoGO

Apply to muthoot ipo.....


Valuation

From a valuation perspective, MFL’s offer at the higher end of the price band discounted its FY 2011 annualized EPS of `13.65 about 12.5 times. Currently, the market composite P/E works out to 18.7x and NBFC industry as a whole enjoys a higher P/E of 24 times though the Micro-finance composite (17.9x) is slightly below the overall market composite.

With regard to peers’ comparison, Manappuram General, which is also head-quartered in Kerala, commands a market cap of Rs 5293 cr at a P/E of more than 22x. Thus, MFL which is much larger in size should get a valuation on listing significantly higher than the Rs 6500 crore arrived at the higher end of the price band.

Source:moneycontrol.com

@ VAS NET,

Your point # 3 is not correct.

As i have already stated that, if issue price will be fixed @ 175 then Anchor Investors will have to give 5 Rs ( 175 - 170 ) to Muthoot.

Anchor Investors do not have pricing advantage. They only have allotment advantage but lockin period is disadvantage.

Hello experts and fellow boarders,

I had a query.
Im currently holding shares of this other Muthoot co. that is listed currently. My query is generic. In such cases, does the success/failure of IPO of another co. of same group have any effect on existing listed cos.? Basically what I intend to know is, can I ride this IPO wave on existing listed shares of the Muthoot co.?

Cheers!
Yury

muthoot finance ltd ipo

seems that the Anchor investors had asked for rs 170 for the issue which means rs 175 is higher rate for investment in issue
also the company is discriminating retail investors and the company has misguided in thr red hearing prospectus that it will give discout to retail investors this has to be anounsed before the issue opens but as the case it is bad news for retail investors

GEM / Vishal R

I agree with what you say. But

1) Normally for good issues the price for anchor investor is fixed at the higher band but they have given at Rs.5/- lesser than the higher price band which very clearly is going to be the issue price.
2) When the promoters had thoughts of giving discount to Retail earlier and later deciding to drop it shows that the promoters are aware of the good response expected for the ipo. Then why lesser for anchor investors?
3) The full allotment and Rs.5/- lesser than issue price (issue price for sure is going to be Rs.175/-) appears to be more than justified for the lock in period.

I personally feel the deal for Anchor Investor is much better than for others. Only thing is that quality investor holding the shares would boost the image of the company thereby would justify an additonal premium.