this one is for long term.not much listing gains for sure.will be available in secondary market for 58 to 60(max)once the hype of IPO settles in a couple of days after listing.1 lakh will be stuck for a month in these volatile market.dont go for it if for short term or listing gains.and never on borrowed money etc.
Every one is talking about long term prospect of PGCIL , but as per the market position will it not be possible to pick it at lower leve later. Moreover most of us apply in ipo for large listing gain which seems very bleak possibility.
Power grid ipo is the best stock to pick,so please take an best opportunities to buy this stock in ipo and listing also, It will tuch in one year min Rs75 to 82 This issue is the bigggest ipo of the last 6 months, invest in ipo and watch the market and again buy in the market correction, Regards shankara.K Chamaraja nagara
Power Grid Corporation of India - Apply with medium to long term Outlook (broker report)
Peer Comparison _______________ The peer members of Power Grid are CESC, Reliance Energy, NTPC and Tata Power having PE multiple of 14.36, 23.08, 20.07, 20.36 respectively. The Book Value of the above is Rs.233.13, Rs. 374.19, Rs.59.73 and Rs.291.77 respectively.
Company’s Valuation ___________________ The total income rose from Rs. 3554.30 crore in FY06 to Rs. 4082.30 crore in FY07 which shows 14.86% of growth. PAT surge to Rs.1229.3 crore in FY07 from Rs.1008.9 crore in FY06 which shows 21.85% rise. The total Income CAGR shows 10.02% growth in last 5 years (FY07-FY03). The PAT grows with CAGR of 13.86% in last 5 year (FY07-FY03). The post issue EPS for FY07 is Rs.2.9 by which P/E multiple on price band will be 15.06 and 17.80 times on lower and upper band respectively. The book value base on post issue equity is Rs.25.43.
Market View ___________ Market holds positive view about this issue.
Comment _______ The issue is fairly valued as compared to group companies. One can invest in this IPO with medium to long term outlook .
ICICI DIRECT.COM is the best site i have come across as i am located in town but for the city investors they may have a different say. ICICI IS BEST as they provide both demat & banking facility.
The grey market premium of power grid is 11.50- 12 Rs. Everyone will get allotment of atleast 300 shares in retail category. It is a good long term story and a niche company. People who can hold it for atleast 6 months can get atleast 35% returns. Better to buy from secondary market after correction, if there is any, I doubt there will be any correction after listing also. As people will definitely buy more on listing.
PGCIL EQ Issue Period Sept 10, 2007 to Sept 13, 2007 Issue Size 57,39,32,895 Equity Shares Issue Type 100% Book Building Face Value Rs. 10/- Price Range Rs. 44/- to Rs. 52/- Tick Size Re. 1/- Market Lot 125 shares Minimum Order Quantity 125 shares Maximum Subscription Amount for Retail Investor Rs.100000 IPO Market Timings 10.00 a.m. to 5.00 p.m. Book Running Lead Manager Kotak Mahindra Capital Company Ltd., Citigroup Global Markets India Pvt Ltd and ENAM Securities Pvt. Ltd. Syndicate Members Kotak Securities Ltd. Categories FI, IC, VC, MF, FII, FVCI, SIDC, PEF, PF, MLA, CO, IND, HUF, NRI, OTH and EMP No. of Cities with Bidding Centers 58 Inclusion in F&O Segment Eligible, subject to SEBI approval