Power Finance Corporation Ltd FPO Message Board (Page 48)

Dear Madhur Kotharay - I am not well versed with multiple bids. I have to understand first and being in this field we need to know atleast.

Application by minors - I have Demat accounts in the name of my son and daughter with my wife as guardian. Application by minors with guardian is allowed in certain IPOs/FPOs and some don't allow. You may come to know this in the instructions page - Who can bid? Most of the earlier govt. IPOs/FPOs did not allow in the last one year and this is the first govt FPOs in the recent past to allow the same.

Vas nat, regarding comment 265, what do you mean by 'minors can apply'? Minors cannot trade in the market. So the minors will have to hold the share till they become adults?

Regarding comment 268, I had suggested that you have to give multiple bids, with the last bid being at the highest price (which is equivalent of saying it is at cut-off). So you will always get at least the allotment that you would have got had you mentioned 'cut-off'.

This hassle is not worth for most people as it gives about 5% more allotment in some cases. However, those who like to optimise everything, it is a good thing to do.

Another point is if you are applying this thing in ASBA, and doing so by calling the bank, you must insist to the phone operator that you want to give 3 bids. Most operators are clueless and will tell you that as retail investor, you have to apply only at cutoff. I had to tell the HDFC bank operators twice. Now, of course, I do the application on-line.

I also used to follow good brother ,but i dont know where is he may be he is under some other name

Dear Sreedhar,

Now for the final judgement on applying at higher band - cut off issue. Is my comment right on possibility of lowering discovery price there on applying thru cut-off.

f&o ban,now subscription will qib 1.20,hni less then 0.80,&retail will 5times due to discount remember sell only kostak is 100%safe.tomorrow f&o and cash ,can same rate trading. goodluck.

Madhur Kothray - Read your analysis. You are right but confirmed allotment may not be there if you apply at lower price and the issue price is fixed higher.

Sreedhar,

Thanks for ur advice Sreedhar, I will go for 4 full after checking
last minute O/S.
Around 5 years back i use to take advice when applying for IPOs from a good friend Arun, he is from jaipur and use to write with id GOODBROTHER in some boards like MMB,Profit4U(which later changed to TIS) but suddenly he stopped writing in boards. After so long i took an advice today from you other than him until now.

FPO is attractive only from the medium term point of view, as current share price near its 52-week low, without much excitement on listing gains for HNIs, while a nominal single digit listing gain may accrue to retail investors, thanks to the 5% discount offered to them," Tulsian said
Portfolio Manager PN Vijay said, "PFC is a good company. If people were to roll back to the REC FPO which is a similar financing of the power sector infrastructure, it did pretty well in the aftermarket unlike some of the other FPOs. I don’t think you will go too wrong in investing in a PFC follow-on offer, not like NMDC surely. One could put a little bit of long-term money into that issue."

Source: moneycontrol.com/ipo

Dear Fools Brooker - Sorry. I had gone out. You are still in the mood of targeting me. OK fine.

PFC is a case of zero loss on the lower side and profit on the higher side. Why are you particular on the target. Are you not happy if it zooms high? Anyway as I told you I am applying in full.

Another info for boarders. Minors can apply in this issue.

Dear Fools Brooker - Now since you have become a good friend of mine tell me about yourself & your experience in stock market.

Sreedhar,

Can i go 4 full applications now as i cannot hedge in FnO or Do you suggest me to go for 1 or 2 applications so as to keep low risk. U can suggest as you like as i am not a person to blame others when i get loss and praise if i get big profits.

Friends,
PFC has been banned from tomorrow onwards.So you can't short f&o now.Ban will last till listing.

BAD NEWS PFC WILL BE IN FNO BAN FROM TOMORROW AND LOOKING AT THE FIGURES, I THINK MWPL IS MORE THAN 110% SO IT LOOKS IMPOSSIBLE THAT IT WILL COME BELOW 90% BEFORE FPO SHARES COME IN HAND

Friends,

Expected to perform well. F&O banned. It seems , it is highly oversold. There will be at least 10 to 15 percent price jump after last day of FPO. So one should apply bindaas.... and just enjoy the rise.

Thanks sreedhar, one more doubt i deal with sharekhan and so Please let me know if sharekhan allows me to deliver the shares on 31st as (T+2) falls on that day.

BREAKING NEWS..

PFC TO BE IN F&O BAN FROM TOMORROW.

MWPL CROSSED 100%

n kumar,
you may easily short May future.There is a small risk it may spill into 1st day of June.I will square off my future & also sell my shares on May 26 as I can easily give delivery of shares on 1st.

Hi Sreedhar,
If one wants to short PFC futures, is it advisable to short May or June futures? i think there is a little amount of risk in shorting May futures as the FPO shares may get after this settlement and we may get loss in future by shorting. And when the FPO shares get into market again the price decreases. By this way we are not hedging our position completly. I kept an order to short @ 210(May) but it never got there. I will try for 209(May) tomorrow.

M Gupta,
You are spot on.It does not matter whatever price you may ,you will get allotment at issue price.

Dear Tejendra,
Hold Muthoot you will get opportunity to exit at better price.Selling is done in it.Allotment will not be full in PFC.it will easily cross 2 times.You can hedge your position better by selling future instead of selling kostak.If you short say at today's closing price of 208.5 you will get 16 rs including discount.Say even in most optimistic scenario it touches 3 times retail subscription you will 330 share & a profit of 5300.if it is only 1 times as per your expectations you will make cool 16k.So y sell in greymarket.
Tomorrow is the last date for selling in futures as pfcis fast approaching market wide position limits.

IT IS VERY SIMPLE TO EARN THE MONEY IN PFC IPO JUST SELL THE FUTURE AT 208 AND APPLY THE IPO AT 193 GAIN OF RS 16