NTPC Limited FPO Message Board (Page 11)

NTPC-- it would have being worth if the money from FPO had gone into the company for further investment,however the proceeds will go into the dead and corrupt NREGA schemes where the money is pocketed by corrupt local politicans and gov employee,till date no accountability or transperancy is shown as advised by various high level commitees,just imagine ..are we putting money into a black hole,rather wait for market at lower levels.

Dear Mr.Sandeep,
You have a very valid point. Yes when the chips are down, it is wise thing to sell off counters like NTPC and enter into high beta stocks, which would give good results. As you may be aware, i have seen many of my friends whom i met in broker house or nearby do not resort to this strategy and they continue to hold on to such stocks. Further, as you may be aware, when the market goes up, for example, Tata Motors having gone up from 130 to 700+ level, there is no need to wait or hold on, but to book profits and get out. Such profits need to be parked in fixed assets, may be FD or any other investment options, suitable to each one. This money would be handful when you come across a market crash to take advantage. Majority of the investors are greedy, thus they miss the opportunities that come across in the market.

I appreciate that some useful thinking and valid points are being made here, which must be useful to all.

You are views are welcome for further discussions.

I APPRECIATE COMMENT MADE BY KRISJI & RAJESHJI. IT IS GOOD THAT WE DEBATE AND KEEP OUR VIEW WHO NEED
SOME HELP TO ENSURE NOT TO LISTEN DUBIOUS SUB BROKER.
KRISJI I AGREE TO BE IN CAPITAL MARKET IS TO CREATE WEALTH . WEALTH CAN BE MADE IF CAPITAL IS ENOUGHT .
IS BHEL AND SAIL AND NOT GIVEN RETURN . NTPC HAS NOT EXISTENCE HISTORY AS BHEL .

SUPPOSE MARKET COME DOWN AS HAPPEN LAST YEAR , NTPC WAS 170 WHEN ALL OTHER SCRIPT WAS BELOW 1 BOOK VALUE .THAT TIME IF YOU NEED MONEY TO INVEST YOU CAN SELL NTPC TO ENTER HIGH BETA STOCK WHEN MARKET
REBOUND AS WEALTH IS MADE IF CAPITAL EXIST . WHEN NO MONEY HOW YOU INVEST .NTPC GIVES 2 THING THAT GOOD RETURN i.e FROM 170 TO 225 WITH CONVENTIONAL FORM OF
INVESTMENT AND WHEN MARKET WAY DOWN AND YOU NEED TO INVEST THAN CAN SELL DEFENSIVE SCRIPT TO ENTER HIGH BETA STOCKS .

POWER HAS NO DEMAND SHORTAGE AND ALONE BIHAR GOT 90000CR APPLICATION IN POWER SECTOR .
AGAIN IN TIER 2-3 CITY WHERE STOCK MARKET PEOPLEDON"T INVEST OF VOLAITY THERE THIS STOCK AS
PRIMARY ENTRY BUY OUT FOR THEM CAN SUPPORT TO
TRY IN STOCK MARKET ......

AWAITING FOR COMMENT !!

NTPC FACT !!

I READ RAJESHJI COMMENT .I KNOW ADANI POWER IS GOOD
SOLID MANGEMENT COMPANY.SIR I AGREED THAT ADANI /JINDAL HAS AGRRESSIVWE PLAN THAN NTPC . BEFORE
INVESTING IN POWER SECTOR WE SHOULD UNDERSTAND BASIC
HINDRANCE . ALL LATE COMERS HAVE TO PAY FINE .
ALL COMPANY YOU SPOKE ARE SUFFERING FROM FINANCIAL
CLOSURE OR GRAPPLE WITH FINANCIAL ARRANGEMENT .LONG
GESTATION PERIOD , DEBGT/EDQUITY RATIO AND RIGHT PRODUCT MIX IS KEY TO INVEST IN POWER SECTOR .
WHAT RPOWER HAS GIVEN RETURN AND IS LATE ENTERY CAN
PROMISE OF TIMLY EXECUTION AND COMFORTABLE DEBT/EQUITY
RATIO.NTPC HAS ESTABLISHED 31000MW AND NTPC LIKE ELEPHANT WALKS SO SLOW BUT IS ONE OF HEAVIEST IN POWER
JUNGLE.CATCH NET PRESENT VALUE WHY PREDICT .... WHAT RPOWER GIVEN IN 2YRS IN TERMS OF RETURN ....

NTPC HEAMOGLOBIN .....

A. HIGH PROPORTION OF CASH 20/- PER SHARE
B. DEBT/EQUITY 0.64
C. 17,431 CR FREE CASH AS ON SEP , 2009.
D. 9.6% GROWTH WITHOUT MERCHANT POWER
E. NO RAW MATERIAL SHORTAGE
F. NTPC POWER TRADING ARM SECOND IN INDIA
G. JV WITH BHEL FOR NUCLEAR ENERGY
H. JV WITH BHART FORGE FOR EQUIPMENT
L. FROM NEXT YEAR EXPECT MERCHANT POWER SELLING

PLEASE ROE IS CAPPED BECAUSE SECTOR IS DIFFERENT
AS HIKE IS CAPPED .NEW ENTRANT WILL FACE FINANCIAL
CLOSURE , RAW MATERIAL PROBLEM AND GESTATION PERIOD.

NOTE :: NEW ENTRANT BUYING EQUIPMENT FORM CHINESE
COMPANY IF SOME FAULT HAPPEN THE PLANT
CAN STOP PRODUCING FOR ATLEAST 3 TO 6 MTHS.

It is nice that some useful feedback has come from people for my remarks. I am not saying that NTPC is a bad company, but the purpose of investing is to create wealth. As we all know, entering into stock market itself is a risky affair, any business for that matter and we are willing to take such risks. While downside is less in NTPC, upside is also low and taking into account the unpredictable nature of market, it would be better to gain as much as possible. Those Companies which i mentioned, though came down to low levels, quickly bounced back and gave enormous return. i bought Tata Motors at about 130 levels which is now quoting around 800 levels. (almost 6 times). There are some lovely Companies also - say TCS quoting around 450 cum-bonus, kotak bank came down to 200 levels, jsw steel came around 250 levels. It is safe to be invested in NTPC, but returns can never be matched with other companies. we are not looking to compare sectors.....our ultimate aim is to create wealth.. Also, i don't agree with the view that we need to have some power stock in our portfolio.
Thanks. Your views are welcome.

NTPC is safe stock 2 hold but i thing be clear if u want growth then NTPC is not that good as NTPC has 30,000 MW curently & it will be near to 2X till 2016 60,000 MW but see Adani power which is right now have near to 400 MW & in 2016 they will be having near to 6000 MW which is 15 times more then curent. jindal Energy right now 1000 MW & in 2016-2017 they will be having 6000 to 6500 which is 6 to 7 times more & same with R.power. so in NTPC growth is just 2 times as compare to others. My this is the reason why the stock is trading so low on its PE. as compare to other that also its the Largest in asia then also so much low PE.

I AGREED WITH KRIS COMMENT BUT I MEAN TO SAY NTPC IS VERY STRONG FUNDAMENTAL IN LISTED/UNLISTED POWER COMPANY .SAIL/BHEL/BANK IS ALSO GOVERNMENT COMPANY BUT
GIVEN RESULT AS THEIR EXISTENCE IS FROM DECADE LONG .CAPITAL GOOD SECTOR CAN"T COMPARE WITH TECHNOLOGY SECTOR LIKE ROLTA ANS TATA STEEL .NTPC WAS
170 LEVEL WHEN MARKET WAS HOVERING 8000.IN PORTFOLIO YOU SHOULD HAVE SOME STOCK LIKE POWER/PHARMA/FMCG TO
HAVE CUSHION WHEN MARKET COMES DOWN . THE YEAR 2009 WAS EXCEPTIONAL AS MARKET REVIVE IN SO SHORT MONTHS IF THIS NOT WOULD NOT HAPPEN THAN .......

POWER SECTOR IS DIFFERENT FROM OTHER SECTOR AS PRICE HIKED IS CAPPED BY REGULATOR CERC.AS I SAID NTPC WILL SELL 2000MW ON MERCHANT BASIS NEXT YEAR SO.SO ROE WILL BE BETTER .NTPC HAS THERMAL , GAS AND COAL BASED POWER PLANT .GAS CAN BE CHEAP AND MAY BE RAW MATERAIL CAN CHANGE THE WAY OF PRODUCTION AND NTPC IS WELL VERSED WITH CHANGE AHEAD IN FUTURE . PLEASE NOTE NTPC WILL HAVE BENEFIT OF GREEN
GAS CREDIT AHEAD .
FUNDAMENTAL MEANS HEAMLOGOBIN LIKE BOOK VALUE, CAPEX SPENDING AND PRICE TO BOOK VALUE ETC.

what is fpo ? i need to know for fpo.......

krish, NTPC is the safest stock like ONGC and other. you are talking about TISCO and other but why are you not considering that when sensex was fallen down from 21000 to 8000 then TISCO fallen from 950 to 150, where NTPC not go down below 170 @ 8000 sensex, agreed movement is less but risk is also less

Everyone says NTPC is a good Company with strong fundamentals and dividend paying Company. But if you see the price movement and wealth creation it is no where when compared to Companies in other sector. NTPC over a period of time, say a year moved from 180 to 216 now whereas Tata Steel or Tata Motors or some software companies like Rolta or Infrastructure Company IDFC had moved 400% in a year. May be a good Company, but not wealth creating Company. So there is no need for giving so much of importance. if the price is not at a discount market, there are lot of stocks in the same price range available today, to pick up.

Kindly send issue details of NTPC on my email address mangeshdmore@yahoo.co.in

NTPC - FUNDAMENTAL IS CASH COW ....

NTPC PRICE BAND WILL BE DECIDED ONE DAY PRIOR TO FPO
DATE .

INVEST IN NTPC FPO .NTPC PE RATIO 20.20 TIMES, BOOK VALUE 71.50 PER SHARES . PRICE TO BOOK VALUE 3. DIVIDEND PAYING COMPANY .
CURRENT INSTALL 30,600 MW , TILL FY 12 50000 MW EXPECTED
WITH MONEY RAISED FROM FPO . JOINT VENTURE WITH BHEL
FOR NUCLEAR ENERGY .
MOST IMPORTANT :: NTPC WILL SELL 10% OF ADDIDTIONAL
POWER AT MERCHANT RATE . NTPC NOW SELL AROUND 1.85 AND EXPECT TO SELL AT RS7. TILL NEXT YEAR NTPC WILL SELL 2000 MW AT MERCHANT POWER.

NTPC IS GROWTH STOCK AND FUTHER UPSIDE ENORMOUS.GROWTH CAN GROW , VALUE STOCK CAN TAKE TIME AND NO ONE CAN PREDICTED.
NTPC BETA BELOW SENSEX STOCK .... DEMAND OF POWER SO MUCH AND NTPC IS FUTURE .

NTPC WORK AREA :: POWER GENERATION , CONSULATION , POWER TRADING AND ASH UTILISATION .
NTPC WILL NEVER HAS RAW MATERIAL SHORTAGE .

SO INVEST IN NTPC AND DON"T LISTEN RUMORS .
INVEST FOR 3YEARS HORIZON ...

A GOOD GOVT.CO.LOOKING THE PAST FPO SHOULD BE PRICED BETWEEN Rs.185-190.THIS IS A REASONABLE PRICE FOR IPO.
Y.S.BABEL

The sudden change in the global market condition and the sharp fall in Indian stock market could affect the price NTPC gets in its
follow-on offer that is scheduled to open on February 3.

A meeting between four investment bankers and officials from NTPC and department of disinvestment on Thursday remained inconclusive due to differences over the pricing of the issue that also has government divesting 5% stake or 41 million shares of NTPC.
According to officials from the investment bankers and NTPC, while the government is seeking a minimum benchmark price of Rs 220 for the offer, the investment bankers are suggesting a price of Rs 200 per share factoring in the recent developments.

It has now been agreed that both the side will meet again on Friday after market close to finalise the floor price of the issue that is slated to take the auction route.

It has been broadly agreed that the floor price would be finalised at around 5-10% discount to average price of NTPC over the last three days of the current week (Wednesday, Thursday and Friday), one investment banker said requesting anonymity. Based on the recommendation of the investment bankers, a final decision on pricing will be taken by the empowered group of ministers (eGoM) on February 1, a government official said.

If the government buckles under pressure from investment bankers, the price of NTPC issue would not be more than Rs 200 per share. At this price the government would mobilise around Rs 8500 crore, down by Rs 2,500 from the Rs 11,000 crore that government originally targeted to raise from the public offer.

“NTPC issue should not be equated with recent public offerings of other power companies that failed to make major gains in trading. The company’s shares have been in the market for some time and has given good returns to investors,” said the government official.

NTPC's offer is scheduled to open on February 3 and will close on February 5. The issue, being managed by ICICI Securities, JP Morgan, Citigroup and Kotak Mahindra, is expected to be priced between Rs 245-250 a share, according to NTPC officials.

All ipos and fpos has failed, only 2 resion 1.very high price 2.Current week market

Fixation of a floor price,at which the 50% of NTPC FPO is reportedly reserved for retail investors, is indeed unprecented. In view of the market conditions,the "babus" have a tough time to suggest a justifiable price (average of last 3 or 6 months (which in any case would be lower than the "dream" price)as a defensive game. On the other hand, the politicians (who will call the final shot)wanting to maximize the "loot" to be able to cover the fiscal deficit,is likely to influence the end-game. So, what is likely to be the magic figure? No body knows,at this point in time. One important factor to be seriously considered is that the additional float of capital is likely to increase in floating stock for wetting the apetite of the big investors.

In the long run, NTPC, a utility entity should not command a premium valuation.Also, the dilemma is if the floor pricing is lower than the prevailing market price, the retail and other existing investors would sell their holdings and enter at lower rates via FPO. On the other hand, if the floor pricing is higher, what is the "incentive" for them to participate in the issue?

And,what if the QIBs and other major investors are not excited about the "french" or "dutch" auction?

Is the issue heading for a "flop"? Only the time will tell. In any case, suggestion for the fellow retail investors is "Be extremely cautious". It is indeed a dicey situation for them.

NTPC 214- Target 205-200 area, 195-183 area or even below 178. Stop-loss 231. Sell in 222-223 range.

If stop-loss is crossed, scrip may rise to 239.

Nifty Spot 4867- Target 4690-4605 area, 4515-4360 area or even below 4200. Stop-loss 5125.

If stop-loss is crossed, it may rise to 5220-5256 zone.

Market low expected after budget in all probability.

Investors are advised to hold cash to make use of this correction.

IPOs have lost their sheen due to high valuation. IPOs must be applied on case-to-case basis similar to stock selection in secondary market. After listing, IPOs are just like secondary market & moves as per valuation as they are not cheap in recent months.

Dear all,

Can anyone tell us briefly how an FPO will impact the share prices???

Basically what is the difference between all the fund raising activities like IPO, FPO, etc

Is it similar to applying for an IPO or will there be no individual participation?

How can i apply NTPC FPO?