RPP Infra Projects Ltd IPO Message Board (Page 8)

171. IPO Funda
@170 I am afraid that if its subscribed very low that means it has no one interested for IPO hence do we expect buyers at listing..Ya then i do agree for 10% gains only as u mentioned!
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sab operators ka kamal hain on listing day of bs transcomm i think that it is not subscribed so much and no one is interested in buying this so i go for other stock but what i see after market the share i have traking has done nothing and bs transcomm has a bumper listing..............
so any thing is possible in share market sab operators ka kamaal hai bhai see this share on listing day
dont apply but day trade this share this may have great action on listing day either down or up..............................

@174 Jaggs

I thought I have already said what I wanted to about RPP Infra, but if you insist I will definately answer you query.

The postissue earning per share (EPS) turns out to be around 3.70, that means at the upper band of Rs. 75, you are giving it a valuation of more than 20, which is by no means justified, frankly speaking such small companies do not deserve a valuation of more than 12 to 14, so realistically RPP should be fully valued at 52. hence RPP should have priced the Issue much below the price of 52 for investors to make some profit. Taking all this into considerations, I would still stick to my recommendation to AVOID this Issue.

Now it depends on you whether you want to keep an eye on the box office and buy tickets in black and watch the movie or to wait and buy it after the crowd reduces, or for that matter why watch it at all. I am giving it a pass, waiitng for the next release

Panditji

Are you still sticking to your recommendation to avoid this IPO, there are many on this board, who are strongly recommending it, once for the last time, I want to know your final say on this Issue.

Speculation is to be avoided unless an expert. For all others it is better to follow tested roads. Don't be too greedy. Be an accumulator.

Unless an IPO is supported by good fundamentals etc. no point in applying just because some similar IPOs gave good return in the past. Then it becomes gambling and there are better ways to do that outside market.

@170 I am afraid that if its subscribed very low that means it has no one interested for IPO hence do we expect buyers at listing..Ya then i do agree for 10% gains only as u mentioned!

people are not that much serious in this IPO, so chances of getting share is good. one can bet for 10-15 % gain if. I am also thinking for the same. Because by increased limit upto 2 lacs chances of getting allotment in MOIL is just 1/10th.

what are others view?

Initial public offering (IPO) of south based construction company RPP Infra Projects opened for subscription. MLR Securities has recommended avoiding the issue considering its steep valuation, in its research report dated November 18, 2010.
A price band for the issue of 65 lakh shares, which closes on November 22, is at Rs 68 to 75 per share. Bids can be made for a minimum of 80 equity shares and in multiples of 80 equity shares thereafter.

RPP Infra is a construction company primarily engaged in the business of infrastructure development such as highways, roads and bridges.
The report says, "The company’s market cap is coming to around Rs 154-170 crore at a lower and upper price band of Rs 68-75. The P/E post issue comes to around 20 times on a lower price band of 68 and 22x on an upper price band of 75 on an FY10 EPS of 3.5. The price to book value comes to 5x and 5.5x at Rs 68-75 price band. The valuations are on a higher side if we compare it with its peers like ARSS Infra and Pratibha Industries they are trading at 13x and 11x respectively. P/BV is around 4.5x of ARSS Infra whereas Pratibha Industies is trading at 2.2 times its book value. We recommend investors to avoid the issue considering its steep valuation when another listed players are available at a cheap valuations."
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management.Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

aree mat invest karo,paiso ki barbadi he , ek to high subscribtion ka karan allotment lagata nahi he , aur paise waste ho jate he jo achhe IPO me use bhi nahi hote

avoid ....................................
but may have some action on listing day so trade it on listing day.........

Dear 166. Ipofinder:

I am charmed by the simplicity of your assumptions. Please refer to my comments 160 posted only yesterday, and re examine your comments.

N.Narasimhan

Recent IPOs of Infra Cos. like Ashoka Buildcon etc. have not listed with great pump and show.

Hence avoid this and keep your funds ready for other PSU IPOs and FPOs.

Hi Sreedhar,

Completely agreed with ur comments on RPP infra..Being an investor we should tr to use our fund optimizely
here are the simple reasons of applying in RPP Infra
(a) Size of issue is very very small so chances of allotment are not more than 1 lot, Can anyone one tell me a single issue which got subscribe 15 times in retail and got listed in discount(Except Rpower, but the size was too large in RPower)
(b) See the returns of these small types of issue on listing day
Aster got doubled
Tirupati gave 50%
Gyscoal around 50-60%
Gravita gave 100 %
So there is no risk in these types of issue if u sell all of ur allotment on listing day itself
Don't keep them in ur portfolio
In case of RPP Infra it is just OK type of company

(c) Most important reason is if I apply in RPP Infra then I will be able to use same fund in SCI also(means 2 birds with a single stone)

Regarding QIB subscription don't worry ,QIB applies in these types of issue on last day only
Don't expect less than or more than 2-3 times QIB subscription in these types of IPO

Hope it helps all the investors

Always remember a simple rule, The operator can open the stock in the discount only in the case where allotment is too high

Apply in RPP Infra if it is subscribed more than 5 times in retail

then no risk but try to exit on listing day itself

hi arun,
stay away from this issue.

This is a bogus company where personal interest overshadow investors interest. People don't read DHRP and invest just because 45 crore worth company gave 70% in past. It's directoers are husband wife children inlaws and one of the director is not allowed to be in any board. It's board composition is much like Ramky and to my shock it's nature of work and reason to raise fund is also like Ramky. I can only advice investors to beware just like last message. Better stocks with better fundamentals are there in primary as well as secondasry market.

This evening. the RPP Infra IPO completed its 2nd day. The response has been dismal, even in this prevailing mood of excellent revival of investors interest to subscribe to IPOs & FPOs.

The company's employees themselves have not staked even a rupee in this IPO, since none of th 0.4 million shares in this category has been applied for. The obvious conclusion is that the company's own employees do not want to trust investing their money in their company.....a poor reflection on the management! None of the 3.05 million shares in the QIB category has been picked up. QIBs have better expetise to decide which IPOs/FPOs offer possibilities of better returns. Even the retail portion (0.915 million shares) has been marginally oversubscribed by 1.07 times, even after this IPO is the first where the investment limit for retail has been doubled from Re.1.00 lakh to Rs.2.00 lakhs.

Looking at the lack lustre performance at the end of the 2nd day, it would be wrong to compare this with the Gravita IPO, merely because both are small IPOs. I have already mentioned a couple of days earlier, before the IPO opened, that I would not invest in it and would advise retail investors who are still sitting on the fence, to avoid investing in this IPO.

N.Narasimhan

Pandit ji & Sreedhar,

You both rocks.Due to healthy discussion between you guys we(mand buddhi folks ) are getting good knowledge of primary market.

Just want to thank you both. Jai Bharat.

@ 155 Arunkumar

Sir, from my side this is a clear Avoid

@ 156 sreedhar

you are one person for whom I have a great respect, there have been many instances when SEBI has clamped down on manipulation in the IPO market, unfortunately I do not recollect them at this moment, I will get back to you on this.

There are many people who follow you blindly, some of them new, who have jumped into the bandwagon looking at profits made by others in coal India, I have no problem if somebody wants to invest in RPP, My advice to you at this juncture, is to recommend them quality IPOs, you being a seasoned player would know how to get out at the appropriate moment, they may not, dont advice them to get into speculative IPOs at such an early stage, You, I and many here know RPP is a junk IPO, you may know how to play it, others may not, If something goes wrong at the time of listing, Iam sure we all dont want them to get stuck with junks, I know you have no ulterior motive in recommending it, but tread with caution. Just give a thought, let it be known to them that what RPP is worth and then if they take a decision to apply, its thier wish, Please do not take my words in wrong sense, I know you are doing a great selfless service here, God bless you

156. Arunkumar

and others, beware of RPP. It's not gravita! Also any IPo that rcently listed with 50-70% premium are trading below it's offered price. With Incrase in limits and market correcting and almost no activity in grey market if this ipo lists below 25-50% its price don't get shocked. Beware and don't think it's reapeat of all other snall size ipo.