NMDC Limited FPO Message Board (Page 33)

dear sir,as such i know that 5% discount is only for retail investor,but one of my fellow bet me that h.n.i. also gets 5% discount...is it true that h.n.i. also gets 5% discont...kdly clearify...thanks in advance..

277.Mr Bhandari
If you remember JP Hydro was languishing at much below price than this NHPC for a long but subseqently recovered substantially.You must know that History repeats itself,so there is no use of crying foul.

DEAR SHREE DHAR, WE BOTH HAVE APPLIED IN NMDC . AT AHMEDABAD ONLY BUYERS AT 4000/ FOR ONE FULLAPPLICATION....IMP Q TO YOU IS THAT CAN I SELL NMDC IMMEDIATELY AFTER CREDIT IN MY AC ?IN REC I HAVE SELLED IT OUT IMMEDIATELY AFTER GETTING CREDIT IN MY AC AND THERE WAS NO PROBLEM..PL ANSWER ME...YAMBARODA THANKS

Hold it will fetch a return of 100 per share in 3-4 months time frame..

I have applied complete lot at cut off price. Whats experts views here.

i think nmdc is not easy to come down side unless if govt is not cheeter.

I think some high level fraud in NHPC ipo, cbi should investigate it and chek evary bord of directors bank a/cs and properties.

Mr. Bandari you are 100% correct , govt. Ko NHPC ka rate 18 say bada kar 36 karnay waloo ko phasi dayni chahiyay.

Investors be careful NHPC like choor, lutary and poor co. Ipos ,fpos, and don,t forget it it is cong. Govt. Period where small investors loseing money in psus, BJP GOVT. period was golden period for ipo investors.

Since NMDC is not listed in F&O, secondly the stock is having very few shares (1.68 %) in secondary market most of which are further held by Institutions so it would not be easy to bring the stock price below 325. Secondly it will be much easier for the Lead managers/Govt/LIC to keep its price above 320. In next few days it can slightly go up till 375 then it may settle at around 325 just before listing as a lot of people have blindly short sell these shares. Investors can also expect handsome listing gain. Investors with long term horizon must apply in this issue.
Latest GMP
NMDC Application 3450
ILFS 40-42
DQ 52-54 Only buyers
UBI 9.5-10.5 Mainly buyers.
Pradeep Overseas 17-19, came down after hitting a high of 21 on friday.

Hello 274 Manij Jain,
Pl. go through it ant tell me what I have to do?

-------------------------------------------------------
IPOs: It's probably overpriced

Amar Pandit / New Delhi March 14, 2010, 0:47 IST



There is a big debate on the recently concluded NMDC follow-on public offer (FPO). It is one of the biggest disinvestment offers, as it seeks to fill the government coffers by raising up to Rs 20,000 crore.


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I got a call from a friend who was asked by his broker to sella few existing shares and apply for NMDC’s. There are adventurous ones who even borrow to invest in initial public offers (IPOs). High networth individuals (HNIs) are invariably pitched to invest in such public offers with borrowed funds and to exit on listing. The borrowing often happens at the rate of 16 per cent and the investor makes a quick buck if the listing is great. However, many investors have burnt their fingers with such public offers, earlier. One of the biggest example is the Reliance Power IPO, where investors, who were positive about the power story, were powered off when the stock tanked on listing.

Since history is never remembered till it repeats itself, I am not so sure if investors still remember that episode. In fact, most of the power, real estate and other IPOs that made their debut two to three years back are still way below their offer price.

In fact, most real estate and power IPOs (not to forget those during the dotcom era) during in the boom time have always lost the investors’ money. When I had told a group of investors in 2007-08 that power stocks were overvalued and were behaving like technology stocks of the dotcom era, they looked at me as if I was a fool. I was confronted by various theories such as power shortage in the country, capacity build-up and land banks for real estate companies. No one seemed to bother about earnings growth, cash flow, return on equity, etc.

That was the era when housewives, paanwalas and everyone possible had become fund managers overnight. Though several IPOs scraped through, they suffered miserably in the 2008 downturn.

This is because most IPOs were overpriced. Additionally, if an IPO is good, there is a very small allotment made to individual investors. Even some of the mediocre IPOs manage to get a stellar response from retail investors, as they were aggressively sold. Should you, then, sell your existing shares or borrow to invest fresh money in the public offers?

The cardinal rule for most investors is to never borrow and invest, whether for an IPO or in stocks. If you have a huge portfolio of stocks and some have run up significantly in a short period of time, you might consider selling a small portion of a stock for subscribing to an IPO which has attractive valuations and growth prospects. But, remember, the chances of allotment of an over-subscribed issue are remote and any allotment would be negligible.

It's rightly said that IPOs stand for 'It's Probably Overpriced'. I would, in fact, go further and say these IPOs offered by a coterie of promoters and investment bankers are nothing but Idiotically, Presumptuously and Obscenely priced offerings, aimed at raising easy money. Therefore, it always helps to go back to basics, like the one stated in the book, The Intelligent Investor. Benjamin Graham cautioned investors that, "No matter how many people want to buy a stock, you should buy only if the stock is a cheap way to own a desirable business. At the peak price on day one, investors were valuing VA Linux at a total of $12.7 billion. What was the company's worth? Less than five years old, VA Linux had only sold $44 million of its software and services -- but had lost $25 million in the process.

This business was losing 70 cents on every dollar it took in. If VA Linux were a private company owned by the guy who lives next door and he leaned over your picket pence and asked you how much you would pay to take his struggling business off his hands, would you answer $12.7 billion? But, when we are in public instead of in private, when valuation suddenly becomes a popularity contest, the price of a stock seems more important than the value of the business it represents. By December 9, 2002, three years to the day the stock was at $239.50, VA Linux closed at $1.19 per share."

Check the answers to some very simple questions before you subscribe to an IPO:

# What does this company do and is there a demand for its products and services? Will the demand continue to grow?

# What are the profits made by this company in the past two years and what is the projected profit growth for the next two years?

# Is the business generating cash flow from operations? What is the book value per share of the company?

The writer is director, My Financial Advisor

yess...... i am also feeling the same or a little less as Raj that NMDC will surely give 100 Rs if not on listing then later within six month. I also applied 3 full app.

I avoided listening to "experts" and applied in Burnpur cement about year and half ago. I remember it was about 17 bucks and since all so called experts asked to remain away from that share I went to apply full application and got shares worth 97K. I opened in market at 46 and I sold all shares at 53 that day itself. I have same feeling for NMDC that it'll give almost rs. 100 per share back. and yes I'm not day dreaming. Till a wekk ago it was trading at 385!! I have applied 3 full application thru various accounts and keeping fingers crosssed.

If i get NMDC share at the time of allotment. When i can sell and how? Is it listed as other BSE code?

For Retail investors, NMDC won't disappoint in any way. Because we are getting the shares at 285 and NMDC at any point won't come below 300 at any point, because that is the price where many FII's will come and latch the stock.

Don't worry guys, there are many hidden triggers for this stock.

Best of Luck for all the people who have applied for this NMDC FPO.

Neha
You are under wrong impression that price will come down from monday onward. Most of floating stock was with institutions in the past, they maintained price high. They hammered the price down when public issue announced, to keep retail investors out. Now too most of stock is with institutions. They is no need for them to keep share price low as issue is close. Vaise bhi jo dar gaya samjho mar gaya.

NMDC FPC
I was applied for 20 shares at 300/- rs.
If company decide to give at 285/- rs. then I will get at which price? 285/- or 300/-

please tell me.

Mr Agrawal- Do not issue stop payment instructions. You will regret if yo do it. You will be alloted @285. It will not fall to 250.

Mr Agarwal u should immedialy request for stop payment.

Mr Nathan is correct that it is a dark hourse and surely will take u in such a dark thak u will never turn to sharemarket

I have applied for 280 shares but the cheque is not cleared yet. Should i go for stop payment seeing the news that the NMDC share will be at around 250 by the time we get allotment.