Oil India Limited IPO Message Board (Page 23)

its very cheap ipo if u consider the news of bonus allotment just after its listing.. just go for it u will be gainer in next 6 months..
it is a definately buy call from my side

I.P.O.s are like a wine . habitual man takes it either it is loss or profit & can not be avoided.

Please dont apply for this issue. You can anytime prefer buying ONGC.if interested , we can buy the share after it get's listed.( See the price of NHPC.)

To be true i had spoken to the CMD of the co. Mr.NM Borah and he says that @ 1050/- is costly.....better wait for a while n we shall be able to get it at or around 850 - 900.... now guys i believe his words and would do what he hsa said.....

The Hindu Business Line

Hyderabad, Sept. 2 OIL India Ltd, whose Rs 2,772-crore IPO is set to open on September 7, is not jittery about the lukewarm response NHPC’s issue got from the bourses on Tuesday. NHPC’s shares closed marginally above the issue price on Tuesday.

Talking to press persons as part of the company’s pan-India roadshows in the run-up to the IPO, Mr N.M. Borah, Chairman and Managing Director, said NHPC and OIL India were from different sectors and have different fundamentals. “So I do not think it will be right to see the two from the same perspective (as far as the IPO is concerned),” he said.

Exuding confidence that investors’ response to the OIL IPO would be positive, he said the company had five decades of existence in the oil exploration and production business and a healthy balance sheet.

The company has lined up a capital expansion programme of Rs 4,500 crore for the next two years in the exploration and development space. The proceeds of the IPO will be used to finance part of this expansion.

Mr Borah said the company, as on June 30, had a cash and bank balance of Rs 6,568 crore.

So, if someone is deciding to buy share of Oil India, infact, it is mini ONGC being bought. Post IPO, equity will rise to Rs. 240 crores, with Government of India stake falling at 78.50% against 74%in ONGC. So even on this count, it remains, almost at the same levels.


It is an accepted fact of the market, while valuing companies in the same sector, with same pedigree, smaller companies have atleast 15% discount to the bigger ones. Also, in the case of IPO, atleast 10% discount needs to be given, over the expected listing price, to prospective investors.


Since ONGC is now ruling at Rs. 1,185, a discount of 15% over this, gives a secondary market valuation of Rs. 1,000 per share. A further discount of 10% on this, justifies a price of Rs. 900 per share in IPO. Since the band of the share has been fixed at Rs. 950 to Rs. 1,050 per share, even accepting lower band of Rs. 950, based on these presumptions, would be difficult to accept.


NHPC, another PSU IPO, has also recently disappointed giving not much profit to retail investors and losses to HNIs. At that time also, we have said that the government has become greedy by having stiff pricing and the same trend looks to continue for this IPO as well. NHPC having issued shares at 36 is now ruling at 37. It may be worst for Oil India.


Really speaking, though we are not convinced even at the lower band of Rs. 950 per share, but those who are to keen to go for it, should contemplate applying at the lower band. It is infact worth and advisable to buy ONGC from the secondary market, instead of going in for this IPO. To justify the pricing of this IPO, share price of ONGC has to move up from its present level of Rs. 1,185. So why not bank on the leader and giant instead of this tiny and regional player.

Based on the experience of ADANI POWER AND NHPC...

I would suggest to avoid OIL...

IPO season is not same a previous years IPO... I am making loos in almost every IPO

Retail Investors better stay tuned in Secondary Market, there are lot of stocks which are Fairly valued even now also,& market will defintely give opportunity to invest, but as far as IPO's concerned after ADANIPOWER & NHPC, there is no real hope in Primary Market.Govt of India has become more greedier than PRIVATE SECTOR.We should let the corporate world (including Govt. of India) know the retailers strength.

STRATEGY TO INVEST IN OIL INDIA :-

NHPC@ Rs.36 V/S. OILINDIA @ Rs.1050.

NHPC WAS OVERVALUED @ Rs.36 TO COMPAIR PEERS. YET RETAIL

INVESTOR HAVE NOT LOOSED AT Rs.36.30.

HNI LOST A LOT OF MONEY DUE TO INTREST.



OIL INDIA COMPAIR @ Rs.1050 TO ONGC ,

IT IS CHEAPER ( NOT OVER VALUED ).AS COMPAIR TO ONGC .

RETAILERS WILL GAIN DEFINATELY .

OILS LISTING WILL BE ATLEAST Rs.100 ,PREMIUM.


.

NHPC,IPO pricing, listing and the lessons

NHPC's listing which traded 3-4 % above its issue price on listing day and went down the issue price on second day of its listing, may have damaged IPO market for a long time. Its not unusual for a private owned company to trade below its issue price and most of the IPO's which hit market in 2007-2008 were trading below their issue price for most part of 2008 and 2009( But hardly any of these stocks were trading at issue price in one or day of listing) . Some stocks could be purchased even now at 25-40 % of their issue price(Kolte Patil, Edelweiss,Parshvnath, Sobha Develpors etc). But for a PSU stock its criminal to trade around issue price. Two points are to be noted here. First, the power sector itself is very bullish with demand rising every year. Second point is that Government of India(GOI) plans to bring an IPO or FPO every month to raise money for a year or so. So why not keep the issue fairly priced so that investors could make some profit. The issues are so overpriced that they don't leave anything for investors.

HNI and FII are different cups of tea. But the promoters should give a discount of 5-10 % to Retail investors (ala Reliance Power) to bring more retail investors under their umbrella. The confidence will also be boosted by such measures.

Already the Grey market has crashed and their are no takers for Oil India IPO, which starts on 7th September about 4 days time or so. Oil India is fairly priced at Rs.1050/-(Debt free company with book value of Rs.436, EPS of Rs.101 for last year) but the price of Rs.1050 is a major deterrent for retail investors who dont want to put money on such high priced stock but any-day prefer penny stocks or low-priced stocks. The investor beliefs that there is no way Oil India could triple and move all the way to 3000 but a NHPC could easily zoom to 100 when operator is able to make a game in it.

NHPC was priced at 38.3 its earnings(highest among 24 PSU's divested since 2003) whereas Oil India is priced about 10 times its earnings per share.

One thing GOI should have done with OIL India IPO is that they should have split the Facevalue of stock to Re.1 and bring the issue at 95-105 price band. The issue would have got immediate attention of retail investors.

But this time the IPO story has gone from bad to horrific in just two issues unlike say in 2007 when Retail investors were making a killing in about every IPO.

There is only one lesson for everyone from this fiasco of NHPC and Adani Power :

Lesson for Promoters: Don't be Greedy and price the issue at fair value, otherwise you might get the subscription but will end up with egg on your face.

Lesson For Investors: Don't yearn for more profit and invest sensibly looking at the fair value of the shares, if possible sell in Grey Market at reasonable rates and book your profits.

WHAT IS THE PREMUIM PRICE OF OIL INDIA IPO ? ANY ONE CAN SAY ?

265. DINESH, R U HERE TO ADVERTISE ABOUT RELIANCE MEDIA WORLD.

public ka paisa loot maro!!!!!!!!!!!!!!!!!
no restriction on public issue no control on issue orice of shares
very high price of oil india

This is a hopeless IPO.
If you want to lose your money as fast as possible: this is the best one to throw your money......

Open ur eyes or lose your money...
Better lose your money...you will not listen to good words anyway......

i think indian share market is in bull face now.if somebody want to invest so it is a good time.as for as ipo market .oil india ipo is better than last ipo's.i think it well give good return...

dear investor,
pls.beware of ipo.they are making the retail investor fool.adani has disappointed us but we hwere hoping that nhps will not do the same ,but the result is same.now dont believe any ipo now .has any person hoped that the listing of nhpc will be so poor not a single analyst has told about the poor listing.they do not know anything .finally they are making the public fool. so ,i request all the people that if you are not sure about any certaintity about the listing or gmp ,pls do not write in this column for joking or entertaining.

DEAR INVESTOR,
PLS.BEWARE OF IPO.THEY ARE MAKING THE RETAIL INVESTOR.ADANI HAS DISAPPOINTED US BUT WE HWERE HOPING THAT NHPS WILL NOT DO THE SAME ,BUT THE RESULT IS SAME.NOW DONT BELIEVE ANY IPO NOW .HAS ANY PERSON HOPED THAT THE LISTING OF NHPC WILL BE SO POOR NOT A SINGLE ANALYST HAS TOLD ABOUT THE POOR LISTING.THEY DO NOT KNOW ANYTHING .FINALLY THEY ARE MAKING THE PUBLIC FOOL. SO ,I REQUEST ALL THE PEOPLE THAT IF YOU ARE NOT SURE ABOUT ANY CERTAINTITY ABOUT THE LISTING OR GMP ,PLS DO NOT WRITE IN THIS COLUMN FOR JOKING OR ENTERTAINING.

SAVE YOUR HARD EARNED MONEY. DON'T INVEST IN OIL INDIA. LATER YOU WILL GET IT MUCH CHEAOER<

costllyyyyyyyyyyyy

Agar itna hi dar he kharab listing ka to grey market me bech do currently kostak price is RS.1700.

So, within 15 days you are able to earn 1.7%, which is not bad actually. coz 1.7% *12 = 20.4% return per year even you apply for such 12 IPOs. Or NHPC me to Rs.3500 tak ka Kostak gaya tha per its all due to our greed my dear. varna IPO bharo or grey market me becho u defenatly earn good amount.

Thanks,