Oil India Limited IPO Message Board (Page 21)

I THINK THAT IF RETAIL INVESTORE WILL LEAVE THIS IPO THAN IT WILL LIST AT VERY GOOD PREMIUM AND ALSO OIL INDIA AND NHPC IS VERY GOOD SCRIP FOR LONG TERM SO SMALL LOT APPLICATION MUST DO.`

I Think all of you should read this article



NHPC & Adani Power-Powerful companies yet powerless listing
As the IPO season has again regained the momentum in the market, two powerful companies in the power generation space entered the market with their much awaited and sizable issues. Even after huge subscription in the primary market, both Adani Power and NHPC failed to meet the investor expectation on the listing day. Market is concluding that both the issues were priced aggressively and did not left much on the table for investors to flip it on the listing day. Yes, market may be right… to certain extent issues were priced aggressively and did not left much on the table, so they failed on the listing day. But if they were priced so aggressively then how did this issues managed to get such overwhelming response? Well may be because the issues were marketed pretty handsomely.

On the different note most of the analysts from different brokerage houses were recommending to subscribe to the issues. A normal small time investor applied for the issue on the basis of brokerage house’s recommendation . Now the same brokerage house’s analyst is saying that they would have liked the issues if they were to be priced 10% to 20% lower than the offer price. These so called analyst were supposed to be fundamental analyst. I mean what difference does 10% to 20% (returns in Indian context ) make for the investor who is looking to invest for 1year, 2 year or more than that.

Well, this is market. Here in this case of IPO, both the buyer and seller agreed to some price and deal went through. The company who is offering the shares is not here to do some charity work by offering the share at 10% to 20% lower than the current value of the share price. I wonder why there is so much fuss created by some of the media persons in the market over the pricing of the issue by comparing these issues with existing listed companies which are available at cheap on certain valuation parameters.

As per my understanding of the market, value is arrived using the future growth prospects and not only based on historicals. Still people on the street comparing these companies based on the historicals only and not concentrating on the future growth opportunity.

Well, now it’s on the investor to decide as to how much one can believe on to these so called “Financial ANALYSTs” who are really confused regarding their own recommendation by seeing just one day’s (listing day) price performance of the stock.

DALAL STREET

OIL - Review + Recommendation - Subscribe
Oil India Limited engages in the exploration, production, and transportation of crude oil and natural gas onshore in India and internationally. It is India's second-biggest state-run oil producer after ONGC.

Business Profile:
The company involves in the exploration of crude oil and natural gas in Gabon, Iran, Libya, and Nigeria, as well as exploration blocks in Yemen as part of a consortium. In addition, it offers pipeline construction and related services to third parties, including pipeline construction, pipeline cathodic protection services, and other specialized pipeline services, such as hot tapping and line tracking.

Government Disinvestment:
Post-IPO and disinvestment, the government's stake in the company will decrease from 98.13 per cent to 78.5 per cent. The government has fixed the price band for the hyped initial public offer (IPO) of Oil India at Rs 950-1,050 a share. CRISIL has assigned 4 of 5 Star Rating for OIL India.

Reasons to Invest:
OIL, believes its earnings per share (EPS) and book value are better than ONGC. OIL produces to 10 per cent of the total crude oil produced in the country [ONGC 76%]. Company has the corporate strategy to dilute exploration and production portfolio as well to reduce the geological risks.

OIL India Offer Details:
Bidding Opens 07-09-09
Bidding Closes 10-09-09
Minimum Bid Size - 6 Equity Shares of Cace Value RS 10
Retail Size - not less than 72,13,631 shares [~INR 750 cr]
Fully Diluted Equity after IPO - 240.5 cr
Last Year EPS - Rs 104
NAV Per Share - Rs 438 [pre- equity dilution]

Peer Group Companies - ONGC, Cairn India, Hindustan Oil Exploration.

Financial Reasons to Subscribe to the Issue:
OIL India has recorded a CAGR in PAT of 15% over the past 5 years [Outstanding record in our view]. For Quarter ending June-2009, OIL India has recorded a PAT of Rs 739.6 cr, annualising the same it will yield to Rs 2956 cr PAT on an expanded Equity after IPO of Rs 240 cr thus leading to an EPS of ~ Rs 120 for FY 2010.

OIL India should not find any difficulty in trading at a P/E of 11-12 on conservative basis thus we setting a Target price of Rs 1400 for March-2010.

Additionally, if dividend is maintained at 305%, you will stand to get an yield of 3% on you investment, same as your Savings Bank A/C.

We Recommend Investors to Subscribe to the OIL India IPO Public Offering

hi all,
yadi aap oil india ke IPO me invest karna chahten hai to nazariya lamba hona chahiye. Yadi aap listing gain chahten hai to ishe avoid karna behter hai. Iska prics band or PE ratio other related listed co. se behter hai. (at present). nazariya lamba hai to isme nishchit hi best profit dekhne ko milega.
best of luck.
Thanks all.
Bay.

Comparison of Oil India, Adani Power and NHPC.
Number of shares offered to Retail + Non Institutional investors.
Oil India - 9.618 millions
Adani Power - 117.460 millions (12.21 times more than Oil India)
NHPC - 654.176 millions (68 times more than Oil India)

This means very few shares to the extent of maximum 9.618 millions will come into secondary market for sale as compares with Adani and NHPC which were 12.21 and 68 times more than Oil indian in numbers.
This is clearly indication that there will be listing price advantage for the investors as well as future investment because of less volume of number of shares.
The price is also be not offerdable to very small investors who are shor term in nature. So I think we should apply with full hopes without fear in mind as happened with Adani and NHPC. The Turnover, Profit, Orders, Govt of India support and all other things are possitive in all respects.
Apply without hesitation.

adani & nhpc listing is bad so that avoid oil india ipo.

sell your last shirt and apply for oil india.
when it will list people will come to discuss it was very high priced issue.
the death of primary market will be confirmed after oil india.
when NHPC time people were also buying it at 7 rs primium with discussion of listing above rs 50.
here this will hover around 1000 rs now immagine your profit,
khaya piya kuchh nah gilas toda barah anaa.....

Artical from Moneycontrol.com

http://www.moneycontrol.com/india/news/ipo-tip/will-adani-powernhpc-poor-show-impact-oil-india-ipo-/414317


Sajeev Dhawan of JV Capital Services says “With the experience that investors have had in these two large initial public offerings (IPOs), why would you bother to invest with short-term. One should buy the stock if one is very patient but for the average investor, it is probably avoid. One might get it at cheaper price when it does list in the markets in a few weeks time.”

Valuation

At a price band of Rs 950-Rs 1050, the P/E works out to 10.2-11.3 times on an EPS of Rs 93 for FY 2009 on post-issue equity of Rs 240.45 crore compared with ONGC's P/E (on FY 2009 EPS) of 15.6. ONGC is almost 10 times Oil India's size and will continue to trade at premium to Oil India Unless oil sector reforms are carried out and upstream companies are freed from sharing subsidy burden, ONGC's valuations look stretched.

FY 2009 was the best year for crude oil prices. As not much growth in volume is expected in the next few years, Oil India cannot be expected to show any significant growth in earnings over the next few years unless oil-sector reforms happen and they turn out to be favorable for upstream players.

CAPITAL MARKET

OIL issue is definitely over-priced. Importantly,the fiasco of Adani and Nhpc has badly hurt the sentiment of almost all types of investors.Avoid investment in IPO, you can always buy it from open-market (if you are a long term investor).For those looking for listing gains, there appears little chance. Why burn your fingers again.By not applying, you would be doing a favor to investing community, as it would send a right signal for the forthcoming PSU IPOs.

assured listing at 950.

hi sri we go to oil india or buy from the market

Risk to Reward appears to be vary poor . However , Investors should keep an eye on subscription in Employee Quota.If employee of a concern do not have faith in their company how an outsider can?

Dear investors don't speculate the future of OIL IPO from the recent listings of Adani & NHPC...

THE FUNDAMENTALS AND FINANCIALS OF OIL INDIA ARE REALLY STRONG..

The company unlike NHPC / Adani is been in existence since last 50 years..
And i am sure that if there is something wrong with the management or the fundamentals of the company that it wouldnot have survived for such a long period.

BUY!

GOI IPO LAGANA BAND LOOTERA HA GOVERMENT

INVEST IN OIL IPO AT UPPER PRICE BAND WITH FULL CONFIDENCE AND WILL GAIN AFTER LISTING AT RS 1230.00

hi ..oil india ipo is expensive..avoid it...

Pls avoid OIL India IPO

PLEASE BEWARE OF OIL INDIA IPO ,THIS IPO IS THERE TO FILL THE COFFINS OF POLITICAL PEOPLE.
RAKESH

Dear All.
I am associated with the IPO for the last so much time but in the last tow ipos which is have seen i.e Adani & NHPC .Prior to the opening of the issues all the buisness channel were saying these IPOs are very good & one should apply for listing gains & long term gains & pass the legecy to your childrens. Each & Every persons on electronic media was telling to subscribe these issue saying that these issue are very good then the shares which are available in the market right now.

when the allotment was completed & on the lasting day these shares crashed hopes of milions of the pepoles justlisting only up on small ammount & then slip in to the issue price & every persons on business channel was ssying that these shares were aggresively priced & hold these shares u are sitting on gold mine.
I would like to telll your goodself that the issue price of Adani Power & NHPC was determined at the BSE index of 18000. But the sensex is at 15500. Who one can earn the listing gain?
Today i.e on 05/09/09 our two business channel were also trying to convince the people to apply the OIL INdia issue . I am very much sure that the pattern of Adani & NHPC will repeat in the case of OIL india issue. On the listing day it will be trading on the issue price & then will slip below the issue price & the analysist will tell hold these share you are sitting on the goldmine.
You can well understand we are small retail investers & on the recommodation of these persons we should apply these issue which are priced on 18000 sensex & later on somebody asks us to sit on the goldmine.

PLEASE DONOT APPPLY FOR OIL INDIA IPO UNLESS IT IS NOT PRICED AT 15500 SENSEX
So it is request from my end please express you opinion. I am waiting for your reactions.

Thanks a lot.
With Warm Regards