Ravi Kumar Distilleries Ltd IPO Message Board (Page 7)

I do not agree with PanditJI. SCI is a definite risk.MY only consideration is it has been bailed out without zero percent doubt by SBI & LIC.The fate of NTPC which was bailed out is known.It is 180 7 went all the way to 170.NMDC which was again bailed out & was given around 300 & People just managed to sell at breakeven.It has reached 220.Those who have invested in Govt companies like SJVNL,NTPC,NMDC,NHPC are licking their wounds.NMDC subscribed 0.2 in retail,so was NTPC did it prevent them witnessing selling pressure post listing & both went to discount immediately after listing. So no heavens are falling if one ipo is missed.Those who have courage to withstand probable loss can apply becos there is no guaranteed gain post listing.145 price is just a mirage which will disappear tomorrow.

At what address you have sent complain to SEBI,REg COAL INDIA LTD. I have not received any allotment on my applicaion for 350 shares on application number 283333421.REGISTRAR AS WELL AS COAL INDIA LTD are not replying to my request for refund of Rs 85750 even after 9 reminders. Even chittorgarh .com have not helped me in getting refund,although ,I am very old member of chittorgarh.com.

The buoyancy in the Indian stockmarkets led many companies to announce a flurry of IPOs. The perception was that since it's a bullish market, investors would lap up these IPOs even if the valuations were not attractive enough. And many investors now seem to have paid a heavy price for the same. For out of 62 IPOs that hit the market this year, investors have lost money in 37 of them. That's more than half. Obviously the recent spate of scandals and the consequent volatility in the markets has pushed down the prices of many IPOs. But these developments are not the only the reason why many of these IPOs are languishing at lower prices.

The investing rationale for IPOs is the same as investments in any other listed entity. And if a company with not so great business fundamentals comes out with an IPO at not so great valuations, investors stand to lose out in the long run. Another reason why so many IPOs have not done too well is that investors put in money in them for listing gains. Then booked profits as soon as the IPOs got listed as concerns over quality and pricing of issues heightened. Thus, investors would do well to do some homework before they go in for IPOs and not put money into them just for listing gains.

Hello Sreedhar,

Yesterday I sold 75% shares of LIC but still holding 25% shares I want to keep this for medium term (as this stock is going to split and also they will be getting banking licence).
what you say?

Regards,
Anil G

Hello Nataarahan and Ravi Bangalore,

Today I bought DB reality @ 232.7 rs/share and Koutons @ 59 rs/ share

The issue is being lead managed by Comfort Securities Private Limited, who were the BRLM to the IPO of Tarapur Transformers limited, which came in the month of April 2010. Against the issue price of Rs 75, the shares are currently trading around Rs 33/- The lead manager is known for managing poor quality, grade 1 and 2 IPOs. The current issue is one such. The Puduchery based, small size, small time manufacturers of IMFL is entering the capital market with issue of 1,15,00,000 equity shares of Rs 10 each in the price band of Rs 56 -64. The issue opens on 08-12-12. The issue constitutes 48% of the post issue capital of Rs24cr.


The company is engaged in the business of manufacturing and trading of Indian Made Foreign Liquor (IMFL) under own brand, as well as for third parties. The IMFL comprises of Whisky, Brandy, Rum, and Gin&Vodka.

The objects of the issue are being to part finance the expansion, for brand building and to meet the incremental working capital needs, among others. Out of the issue proceeds, the amount earmarked for incremental working capital is Rs 34cr.

FINANCIALS:

RS IN CRORES
08

09

30-06-10

TOTAL INCOME
43.10

50.23

13.93

PAT
1.70

1.99

0.59
EPS (Rs) 1.36 1.60 1.00#
RONW % 13.00 13.27 --

RISKS / MATTERS OF CONCERNS:
1. The scale of operation is very small. The operation is restricted to union territory of Puducherry.
2. Highly competitive, highly regulated segment, with low entry barriers.
3. CARE IPO grade 2, indicating below average fundamentals.
4. The average cost of acquisition of shares by promoters is Rs 2.51
5. Corporate governance is much to be desired. The company has received notices from ROC for non compliance / violation of various company guidelines.
6. The company has entered into an agreement with one of the Group Company - Ravikumar Properties Private Limited to acquire 33.54 acres of land for a total consideration of Rs. 1500.00 Lacs.
7. The company had negative cash flow in the past.
8. The company is yet to place orders for plant & machinery and equipments, required for the proposed expansion.
9. The company has very high debt component – Rs 27cr.

VALUATION AND RECOMMENDATIONS:
The company is likely to report an EPS of Rs 1 for the FY 11, on the post issue expanded capital. In the band of Rs 56-64, the company is demanding a valuation of around 60 x. Even the best managed MNC companies think hundred times before deciding on such high valuation. The shares are not worth even at face value. AVOID.

No financial results of the company pubihsed for previous years and upto Sep.2010 of the current financial year. In the absence of the same, an investor is not able to come to any conclusion on whether it is worthwhile to invest or stay away from doing so.

I want this site to cull out and publish the info.

N.Narasimhan

LIC,SBI have bailed out successfully SCI.Price will be jacked up tmrw & will then be reduced to 140.Those who have shorted futures may apply

IS IT WORTH TO APPLY FOR, PL?

Yeah IPO shorter good idea.

How is Ravikumar Dist ?

FST

you r welcome mate ....

Sreedhar,

I agree with you, thats I'm gonna wait for tomorrow evening and see how much its been subscribed, and short futures on monday, though I have already shorted one lot at 146.5, ..... and if on monday it is banned, then i will short it on dabba ( hope u know dabba trading). so all i wanna do is lock in sure riskfree return on my capital ... which should arnd 4% in 20 days ....

As per my understanding goes, that way, our profit of Rs. 22k-24k is secured for 1 lot. Now it depends on subscription figures, which will decide how much application is required to cover the short??

FST

.... lets say you dont get a to seller for futures ... which is next to improbable , as SCI is not a very low volume stock. but still lets assume you don't get a seller, in that case also just hold futures and cash position till 30th december

Dear IPO shorter,
Predicting subscriptions has become almost impossible thanks to this retail enhancement limit by the grrrrrrrrrrrrrreat SEBI.I can say for sure coal India IPO retail application money is all the money retail has got but now with this enhancement HNI has entered into retail domain .Ideally MOIL should have taken away all the retail money & nothing would have left for SCI but if HNI enters then anything is possible that's why I had recommended friends in Chittorgarh to go long in SCI.I had bought some futures & sold them today.So thats it .Oppurnity was in going long but danger is there in going short,Say if it subscribes 5 times we will getting only 140 shares in 1 lakh application.Just imagine how many applications we should file to cover the future.So I am not taking any risk as of now.

and if you want the whole rs. 12 difference ..... for that what you can do is hold your cash stock and the position in futures till 30th december, which is F&O expiry date for this month ... and let the future be squared off from exchange itself, in that case your future will squared off on the basis of the closing price of SCI cash stock on 30th december, and you can sell your cash stock at 3:27 p.m.

FST,

you are allowed to square off your initial positioi, even if the underlying scrip is in ban. You are only not allowed to take up fresh position. .... and say if sci is 130 on 18th... you would lose 3 rs on your cash stock ... and the future is 131 you would gain 14 in that .... 14-3 you woul get rs. 11.

Thanks..Mate..but is it risky..from Profit point of view??as I am a absolutely new to Future point of view??Say in case of Market Updown, if i have made a short @ 145..so my profit of 12 Rs.[145-133-fpo retail price] is secured??
Say, when on 18th December,when i tried to square off my position, will i be able to go ahead, even if NSE Ban is there on NEW positions?
In that scenario, the sellers will be there in Future Market, when say SCI is @ 130 on 18th..

Mr. Shreedhar.
Even i am thinking on the same line but will like to have your inputs..Is there any risk involved while going for shorting in future of SCI..Please guide clearlly so i can decide..waiting.

How about Ravi Dist IPO? Advisable?