Power Grid Corporation of India FPO Message Board (Page 6)

300 share applied so 300 share allotted ....as new rules

You will get firm 150 +few extra from left over proportionately

Thanks ankur ...

Some questions:

No lot size restriction : dec is 2000 and jan is 4000
IPO Allotment: I am sure 2000 could be +- 200, does not matter

Do you suggest me to short this right now or wait for some more days ? and if short then december or january and if jan then there will be some risk as is of 4000 shares ..please suggest

i am sorry if i am acting a bit stupid :)

Hello, Options interest if you check in Nseindia.com site it shows IPO expect to list in the market before expiry may be 1-2 days before expiry. There is huge build up of Calls and Puts options near 90 levels. So Dec expiry price in Power grid would be near 90 levels not more than that. Now next step is to eliminate risk and protect capital. If you are expecting 2000 shares then you with out any hesitation hedge your position by buying 95 puts today available at price of Rs 2. Considering expiry to be at 90 levels your net profit becomes 4.5*2000 + 3*2000 = Rs 15000 sure shot with 0% risk. Still any doubts let me know. Approx 8% returns in span of just 20 days on your 2 Lakh investment which is good one to grab even for very big HNIs like me.

DEAR SIR,

I AM new bie please elaborate how to hegdge .what instrution i have to give to my broker for selling before listin of share.also i have applied for two application of 1 lakh each.how many i could get.

thnaks

Hello Ria,
If you have applied for 2250 shares and expecting 1000 shares allotment, then tell your broker to buy 1 lot of Puts@ Rs2.0 to hedge your position.

This will protect you in case FPO Price goes below levels of 93 on listing day.

Ideally hedging done in ratio 1:1 but in your case since there is no other solution so this will work best for you.
Thanks
Ankur