MGL (Maharashtha based) immediate listed peer is Indraprastha Gas limited (Delhi based) , which commands M cap of 8000 crores. MGL is offering 25% stake ofs for 1200 crores, means pre issue M Cap of 4800 crores. Both are govt/ psu sponsored. I think , retailers will be benefitted by this issue being discount offering than peer. Detailed analysis , after getting rhp in hand.
Parag IPO started discount sale (Price Band Reduced)...!! Better strategy would be to go for competitors already on cheap valuations..!! and get in Parag when price become cheaper...
Analysis on Heritage Foods covered in my site..chk archives..!!
GAIL was rallying in trade on Friday and was up around 5 percent on back of news that Mahangar Gas'' (MGL) initial public offering (IPO) will be announced next week. Both GAIL and British Gas Asia (BG) hold 49.75 percent each in Mahanagar Gas. It is going to be an offer for sale, where both the companies will sell 12.5 percent each and raise close to Rs 2500 crore. They are looking at a valuation of around Rs 4800 crore for MGL. The company had filed its draft red herring prospectus (DRHP) with Sebi in November seeking permission to launch the IPO. It obtained clearances from the regulator on January 15, as per the latest update. Mahanagar Gas'' initial share would be around 24,694,500 equity shares. Bankers for the IPO include Kotak and Citigroup.
Read more at: http://www.moneycontrol.com/news/ipo-upcoming-issues/mahanagar-gas-ipo-to-be-announced-next-week-gailfocus_6562581.html?utm_source=ref_article
Another IPO got oversubscribed few days back – that too 70+ times oversubscription - I so wish that I was the seller ;-)
In recent times, the number of IPOs coming out has increased and more importantly, many of them are witnessing significant oversubscription – clear signal that appetite for IPOs is returning to the markets.
This optimism is fueled primarily by the recent upmove in secondary markets.
IPOs are known to generate a lot of emotions - both good and bad depending on how previous few IPOs have performed.
Why are IPOs Overpriced?
Now if I own a company, which is about to go public with an IPO - which means I need to sell my shares to get money - then I will make sure that me and everyone else in my team, will do everything to ensure that I get the highest possible rate for each and every share that I want to sell.
This is not greed. This is what any normal person will do.
Isn''t it?
And that is exactly what a promoter (original Investor) does during an IPO.
Now lets turn around the table.
The ‘above mentioned’ promoter is selling his shares to new investors (i.e. you).
As already mentioned, his primary aim is to get the maximum amount of money for his shares.
He, with his investment banker friends sets the issue price. Remember that he still has his primary aim in mind, while setting the IPO price band.
Now as an IPO investor, you end up paying as much as the promoter wants - i.e. a lot more than what is financially necessary.
This is how IPOs work.
Few weeks ago, I read the news about how L&T had decided to withdraw the DRHP for its subsidiary L&T Infotech’s IPO. Among others, one of the reasons quoted for this withdrawal was that the valuations of company were very expensive and did not suit current market conditions.
But Sir, every ipo doesn''t see huge oversubscription & deadly demand, Case in point is Parag, and not every ipo is overpriced, like recent 3 ipo''s Equitas, Thyrocare & Ujjivan. Something was left on the table for ipo investors, whether long term or short term. It all depends on pricing of issue price that determines the demand it is going to generate. A reasonably priced issue will be a hit, even if NIFTY is @5000, comes out rightly priced. It is the duty of brlms to strike a balance between sellers of the issue & buyers , and should leave something on the table.
Eagleye ji,plz update ujjivan gmp,now i want HASIJA,INDIANSHOWBIZ,For latest devlopment on parag,if u both r not paid expart then share u q view, thnx EE IN ADV
401.1. Eagleye| Link| Bookmark|
May 6, 2016 7:27:53 PM
IPO Guru (6600+ Posts, 21900+ Likes)