Power Finance Corporation Ltd FPO Message Board (Page 49)

VAS NAT MESSAGE NO 238 QUESTION ASKED ON NUMBER 243 IS PENDING

221 GEM IPO

U are absolutely wrong.... (Just because u know a lot of abusive words, does not mean that u are an expert)

for all practical purposes applying at 203 or applying at cut- off is same....

for an FPO/IPo issue price is always same for all the class and all the investors including QIB, HNI (except Retail discount)... only thing is that for price discovery and allotment only those bids which are above final issue price and which are at cut - off are considered

If I apply @203 (and not at cut off) and the price is fixed 200, i will get shares @ 200 .... (There is no magic in it)....

same has happened one of my client applied @ 11 in FUTURE and he got allotment @ 10 only

Govt come out with IPO/FPO only to fill their pockets
and pay salaries to junk people who work in these PSUs.
They are collecting salaries for next 5-10 years through
the IPO/FPO means which they call divestment.

Dear S K P, yes, the newspaper ad says there is 5% discount for retail and employees. But that discount is on allotment, not on application. That means, you have to pay money (ASBA or otherwise) as if there is no discount. Only on allotment, they will calculate the amount due from you, with a 5% discount and refund / release the balance.

This is to help them with the price discovery, where all participants need to bid in the same price band.

Interestingly, on this page of PFC on Chittorgarh site also, it is saying that there is 5% discount. Why not check this site before you check moneycontrol or capitalmarket?

Dear Mr. Madhur Kotharay (247),

I must say "Sorry" for not chacking the newspaper. I tried in Moneycontrol.com, Capitalmarket.com but somehow could not notice.

But I would appreciate if you would say 5% discount is confirmed & already published in newspaper.

Anyway thank you for giving the clue.

SKP

CM 50/100

Valuation

Earnings per share for FY 2011 (based on unaudited results) and expanded post issue equity works out to Rs 19.8 and the price to earning ratio at the offer price band of Rs 193-203 is 9.7-10.3 times. At the offer price band, the price to book value was 1.36-1.42 times of its FY11 book value based on post issue capital. Compared to this the Rural Electrification and PTC India Financial Services quotes at a price to book value of 1.74 times and 1.05 times of their book values end December 2010.

The current price of PFC as on May 9, 2011 was Rs 211.00. And the monthly, quarterly, half yearly and yearly average price was 235.35, 243.50, 277.04, and 301.93. The scrip has been on a continuous downtrend since 14 October 2010 (when it hit 52-week high of Rs 383) as interest rates are rising and there are concerns on mounting losses incurred by some SEBs due to their inability to pass on rising cost of power, which may spoil investment environment in power sector.

Dear S K P (241), why don't you open today's newspaper if you want to see 5% discount for retail? Every paper is blaring PFC's FPO ad.

Often, I find investors don't take even basic steps for their investment money. And they will check 11 shops to buy a simple microwave oven.

POWER FINANCE FPO
DON'T SELL APPLICATION ON GREY MARKET
APPLICATION PREMIUM WILL BE SOON AT 4700--4800

POWER FINANCE FPO

GREY MARKET PREMIUM SHOOT UP 3700 -- 3800

I will submit 2 full ASBA appl. at rs. 193 , if lower band diside, than i will alloted at about 183 per share otherwise my money is safe in account.

VAS NAT ;
GOODBROKER HAS GIVEN HIS COMMENTS ON BELOW MENTIONED IDEAS
WHAT DO WANT TO SAY ABOUT THE SAME ALSO WILL THE PRICE GO TO RS 215 TO RS 220 OR GO BELOW RS200
WILL THE RETAIL INVESTORS GET SOME PROFIT



check willams %r of pfc it is pointing up ward
ACCUMULATION/DISTRIBUTION IS POINTING UP WARDS
CHAIKIN OSCILLATORS IS POINTING UP WARDS
ENVELOPE IS RS 220 TO RS 248
MEDIAN PRICE DOWN
MOMEMTUM UP SIDE
MOVING AVERAGE Down
performance slightly down
price ROC UP
PRICE VOLUME TREND DOWN
RELATIVE STRENGH DOWN
VOLUME HAS INCREASED
VOLUME OSSILATOR UP

Dear Sreedhar,

I have sold two application for Rs.3500. I still have four applications. Should i sell that or hold on my own? Please give your valuable advise.

Regards
Rishi

SOME EXPERTS HERE ARE CALCULATING THE PRICE @ 5% DISCOUNT. MY CONCERN, IS THE 5% DISCOUNT TO RII IS BASED ON ASSUMPTION / PREVIOUS EXPERIENCE ?
I AM SURE SMALL INVESTORS LIKE ME WOULD LIKE TO SEE IN WRITTEN WHERE 5% TO RII IS MENTIONED. IN THAT CASE AT LEAST 5% WILL BE LEFT ON THE TABLE & 5% IN 20 DAYS IS OK.

THANKS.

i have sold my three app. of pfc in 3000/- each , i have two more . should i sold or hold

Dear Gem,
Do u really think this FPO won't cross 1 time in retail? Any specific reason?

POWER FINANCE Corporation ltd

check willams %r of pfc it is pointing up ward
ACCUMULATION/DISTRIBUTION IS POINTING UP WARDS
CHAIKIN OSCILLATORS IS POINTING UP WARDS
ENVELOPE IS RS 220 TO RS 248
MEDIAN PRICE DOWN
MOMEMTUM UP SIDE
MOVING AVERAGE Down
performance slightly down
price ROC UP
PRICE VOLUME TREND DOWN
RELATIVE STRENGH DOWN
VOLUME HAS INCREASED
VOLUME OSSILATOR UP


PRICE RS 213.2 AND FUTURE RS 208.5

WHAT DO EXPERTS WANT TO SAY ABOUT IT

SHORT FUTURE OR NOT
I SAY DONOT SHORT ANY THING
TARGET PRICE RS 215 TO RS 220

Vas Nat, this is my calculation table for Power Finance FPO:

Amount to Invest = 50000      Amount to Invest = 100000
Price      Shares      Amount            Price      Shares      Amount
193      252      48636            193      504      97272
194      252      48888            194      504      97776
195      252      49140            195      504      98280
196      252      49392            196      504      98784
197      252      49644            197      504      99288
198      252      49896            198      504      99792
199      224      44576            199      476      94724
200      224      44800            200      476      95200
201      224      45024            201      476      95676
202      224      45248            202      476      96152
203      224      45472            203      476      96628

Amount to Invest = 150000      Amount to Invest = 200000
Price      Shares      Amount            Price      Shares      Amount
193      756      145908            193      1036      199948
194      756      146664            194      1008      195552
195      756      147420            195      1008      196560
196      756      148176            196      1008      197568
197      756      148932            197      1008      198576
198      756      149688            198      1008      199584
199      728      144872            199      980      195020
200      728      145600            200      980      196000
201      728      146328            201      980      196980
202      728      147056            202      980      197960
203      728      147784            203      980      198940

You should pick the bids from the rows just before the price goes up one notch. So my bids would be (stare at the table and this will be obvious):
For Rs 50000,
Bid No      Price      Shares      Amount
1      198      252      49896
2      203      224      45472

For Rs 100000:
Bid      Price      Shares      Amount
1      198      504      99792
2      203      476      96628

For Rs 150000:
Bid      Price      Shares      Amount
1      198      756      149688
2      203      728      147784

For Rs 200000:
Bid      Price      Shares      Amount
1      193      1036      199948
2      198      1008      199584
3      203      980      198940

So if the final price decided is Rs 193 and assuming there is 1x subcription,
I get the following no of shares (first column indicates my investment amount):
Amount      Cutoff      My Method
50000      224      252
100000      476      504
150000      728      756
200000      980      1036

If the retail subscription is more than 1x (say, 5x), the numbers are reduced by that much proportion (by a factor of 5, in the germane example).

Applying as Cut-off is fine in general but why not optimise this way as it takes extra 15 min to calculate all this. Essentially, you are squeezing your money a bit more.

wether it has 5 % discount for RII's or not???

FORGET EVERY THING APPLY AT CUT OF PRICE FOR IPO WHICH IS BEST FOR RETAIL INVESTOR OR DONOT APPY AND LOWER BANDS IT IS BETTER TOAVOID THE ISSUE LETS SHIFT TO THE TODAYS RATE OF IPO TODAYS PRICE 207.8 FUTURE UP RS 1.25 AND FOR EQUITY IT IS RS 212.05 UP RS 1.05

M.Gupta - You may be right in today's conditions when all ipos gets oversubscribed and your logic of extra allotment may be there.

But encouraging cut-off for Retail is always good in the long run and when a period of no oversubscription is there(Can it occur ??).