NHPC Limited IPO Message Board (Page 137)

can n e one say what will happen about employees quota shares it is not subscribes?...so will it get transferred to retail ?...if yes then how much?...i have sold 10 applications @ 3800/- . what do u say? is it is right / wise decison?
what listing is expected?

as the refunds of adani power is still awaited ,the nhpc issue has got some less subscription.the allotees of nhpc should cheer as it will list around rs.50/-.but dont sell this share as it a long term share and one must have this share in their portfolio.

whatis rii ?

is threre any chance of allotment. i hav applied for 2 lots @ 36 in retail.

As the shares of NHPC heaveyly over subscribed, I want to know whether the Grey market premium increased of Not .


NHPC LIMITED - Bid details

Sr.No. Category No.of shares offered/reserved No. of shares bid for No. of times of total meant for the category
1 Qualified Institutional Buyers (QIBs) 981263799 28614450725 29.1608
1(a) Foreign Institutional Investors (FIIs) 16611008750
1(b) Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies) 9581967150
1(c) Mutual Funds 2137271850
1(d) Others 284202975
2 Non Institutional Investors 163543966 9274158600 56.7074
2(a) Corporates 4280722775
2(b) Individuals (Other than RIIs) 4660083400
2(c) Others 333352425
3 Retail Individual Investors (RIIs) 490631900 1900194450 3.8730
3(a) Cut Off 1793778525
3(b) Price Bids 106415925
4 Employee Reservation 41934350 23888375 0.5697
4(a) Cut Off 201600
4(b) Price Bids 23686775

Reply to no. 674-you will not get any shares. As people biding at 36 are much more in numbers than sought by the company. An d in any case how couold u bid for 2800 shares? for retail it is max of 2625 shares

I have applied for 2800 shares (16lots of 175)at Rs.35/share,Can anyone inform me how much I will be alloted?

To Calculator,

You have very nicely explained as to how to calculate retail o'subscription. Thanks!

670 Yash, Satish is correct. This issue is subscribed 3.65 times in the retail category. So for those who applied 1 or 2 times, the allotment is decided by lottery method. So either you get or don't get and if you get, the number of shares you get is equal to one lot. The chance of allotment within this lottery is more for those who applied 2 times and less for those who applied 1 time.

As per the calculation a full application of 2625 shares will fetch anything between 710 - 730 shares for sure.
The calculation shown by @655 calculator is approximately quite right. It has worked in case of Adani power alotment also.

@Satish

"and we can not go with allocation based on exact division of oversubsrtiption multiplier.
always allottment would be in number of lots (175) ..
if u have applied for 2 lots. for present 3.65 oversubsription...it is unlikely to say that u get this 350/3.65 number..
rather, either u get atleast 1 lot or nothing..."

Dont give false information..
allotments need not be in number of lots. it can be any number of shares..
in Adani i got 245 shares which is not a multiple of 65 (the lot size)

I would not use the P/E multiple as the criteria. I would rather use the comparision of Price/BookValue as the more appropriate basis of evaluation.

And in my opinion NTPC is the best comparision.

Does anyone here know the Book Values of NTPC and NHPC for the year ended 2009 and the projected Book Value of both the companies for 2010.

If I am on the right track, then the Price of NHPC ought to be no less than 50 & no more than 58. That is if its benchmarked with NTPC on the basis of P:BV

Anup, whether an IPO is subscribed at least 1 time is not a criterion in fixing the issue price in isolation.
What simultaneously matters is the price at which the majority bids are received. Book-building process works on principles of auction, however within a band. So if majority bids in case of MHRIL were below the upper band, the issue price cant be at upper band. I guess, it may be verifiable from MHRIL's Basis of Allotment.

True, if somebody bids at lower than the price decided, then he is not entitled. But, if at least one bid remains higher than the price decided, then he is considered.
e.g. Bid is at 36 and price decided at 35, it will be considered.
But, if bid is at 33 and price decided as 35, he doesn't get it.

Like if you put a higher price to purchase a stock, you get the share at current market price.
So, it is advisable to put at least one bid at the highest price.

and we can not go with allocation based on exact division of oversubsrtiption multiplier.

always allottment would be in number of lots (175) ..

if u have applied for 2 lots. for present 3.65 oversubsription...it is unlikely to say that u get this 350/3.65 number..

rather, either u get atleast 1 lot or nothing...

AFAIK, if u have selected at cutoff price, u would be entitled to avail the price whatever that would be decided.

if u have had a bid @ 36, if rate is decided ..assume at 30..u wont get a chance to avail it..

ok! one more thing. The final price doesn't depend on oversubscribed or undersubscribed.
See the example of Mahindra holidays.
Price band was: 275/- to Rs 325/-
Over subscribed, but price fixed at Rs300/-

1. No, I don't have to sell out at 36/- because regulators don't allow it. After normalization of bids a price is fixed and everyone gets in that price.

2. In fact, I wanted to invest not more than 25000/- so instead of applying full, I bid as follows:-
9 lots @ 36 ( i.e. matching the cut-off but not at cut-off)
10 lots @33
11 lots @30

Anup, just in case had NHPC not been subscribed enough at Rs 36, then issue price would have been lower, but you would still have had to shell out Rs 36 per share as yours was a "price bid" at Rs 36.
Experts may correct me if I am wrong.

657 (Guru) & 658 (Anup)
If a retail investor/employee doesn't bid "at cutoff" and instead bids at any particular price (like Anup bid at Rs 36), it is a price bid.
And its impact is that it tends to "push" the final issue price arrived at by the book- building process upwards. It can create a difference in under-subscribed issues.