53. See vinayak, Raising the retail limit to 2 lakhs is good for those who can afford 2 lakhs and is really not good for those who can afford only 1 lakh.
54. Pandit Ji| Link| Bookmark|
November 17, 2010 4:31:38 AM
Top Contributor (400+ Posts, 200+ Likes)
@ 48,
RPP Infra is a very very small Issue, and Iam sure it will be manipulated once it is listed, What I mean to say is that fundamentally it is fully priced, for a small infra company mainly concentrated in the south and valuation PE multiple of more than 21 on post issue capital is not justified, the company is a fifteen year old entity with stagnant growth all these years, there is considerable amount of debt more than 250 crore on the books,
The only favourable point is the issue size, which is very small, the scope for specualtion is very high, I dont say you will not make listing gains, but those will be pure speculative in nature, If the market goes ine to a tail spin before the share gets listed, the stock would turn out to be risky proposition, Infra at the moment is out of favour, I have put forward only the fundamentals of the company now, which I feel are not worth at 75/-. Now for listing gains one will have to wait and see the subscription levels, Iam sure this one will also be heavily oversubscribed, but wiat and see on the last day, also keep an eye on the market, if it goes southwards, RPP will have a tough time, even with the tiny issue size.
There was a time when valuations were important to ascertain the price of the company, now a days the issue size, the grey market premmium play an important role. RPP is like a donkey running at the races, only plus point its carrying an underwieght jockey, you may win if you bet on it but what I want bring to your notice is the fact that it is a donkey and not a horse, winning and loosing on it is diffrent matter game altogether.
I am confused as to how raising the investment limit to 2 lacs is going to benefit the small investor. Consider this - - Retail portion for virtually all IPOs have been oversubscribed in recent times - In case of oversubscription, generally speaking, the applicants get a prorated allottment - So for people not able to pool in the entire 2Lacs for an application - who otherwise would have managed to put in 1lac - the ratio of shares that they can hope for will go down - Even in case of lottery system, since high volume applicants will be more, probability of allottment for small applicants (1 lac or less), is bound to go down.
IPOfinder,For small issues it does not matter.I had replied earlier to Arti that it does not matter to gravita where nifty is at the time of listing,nifty affects nifty stocks like RIL,TATA STEEL etc,infact GMP increased from 70 to 90.So once issue is success nothing will affect the listing of such small isssues. Gravita at 125 was quite expensive atleast RPPL is at comparable valuations.I am going for the issue for me 4-5 times subscription in retail will be enough.If it subscribes less I will get more profit in RPPL than Manganese ore.
Thanks a lot , I earned a cool profit on the 1000 share that I purchased from Grey market.. I am bullish on RPP infra also because of it's size and business
valuations are OK side and due to size it will be manipulated well
Here is the listing record of 50 crore issues in last 1 year
Aster Sillicate:- Got double on listing Tirupati:- Gave 50 % profit Gravita:- Got double on listing Midfield:- Gave 40 % returns(size was some 75 crores)
SO these small sized issues are very good , chances of losing money is very low in these issues as the allotment is very very less
I am going to apply in full load in RPP infra Please let us know ur take also.
I saw ur comments on RPP... As I could make out we can put in money in RPP just for prospective listing gains... What does it meant when u said market supports when the share list for trading...Listing was exactly what was being discussed last few days...Does interest shown by NII investors play any role for speculation
Panditji @ 41 : Very good analysis & advice on RPP-IPO.Must be read & followed by ALL boarders to be on safe side.Rest is all upto the seasoned investors' own conclusions ! I shall not apply .
can anybody tell me, as the retail limit has been increased to 2 lakhs, the bid lot for this issue will remain at 80 or will it also be changed to 160.
IPO mein bhi satta......secondary mein to suna tha.....
41. Pandit Ji| Link| Bookmark|
November 16, 2010 5:33:19 PM
Top Contributor (400+ Posts, 200+ Likes)
This is another of classic satta material being thrown to Investors, Artistically crafted for operators to speculate, you can have a Gravita sort of fun in this one too, minus the comfort of valuation, the Issue is expensive by all paramaters, there can be no comaprion to ARSS except for the size of the issue, ARSS left a lot on the table for investors, on the other hand RPP Infra is more than fully valued, You can apply for speculative gains, provided markets support when the share lists for trading, otherwise there is noting in the Issue, Iam skipping this one.
The Securities & Exchange Board of India (SEBI) has increased investment limit in IPO (initial public offer) or FPO (follow-on public offer) for retail investors to Rs 2 lakh from Rs 1 lakh. The SEBI has raised this limit for the first time in last five years. RPP Infra Projects is the first public offer that will get benefited from this investment limit.
Market regulator had announced the limit last month but will get implemented from now onwards. However, the SEBI has not increased retail investors' reserved portion, which kept at 35%.