Ruchi Soya Industries Ltd FPO Message Board (Page 23)

More than 2 L you have to select nii
and price should be you have to enter manually

I select rii bcoz in axis it's written that individuals more than 2 lakh, my application rejected?

Which nbfc and what is the margin and interest rate??

Bajaj. Margin is 15% and ROI is 8.5%.

What is the overall limit. Are they supporting application amount of say 2 crore?

The rates and margin are revised.
Margin now is 10% and ROI is 12%.
Maximum funding they are giving is 350cr and lowest they will give is 5cr

hey ipo stonks are you still taking funding??
what is the logic behind taking funding as gmp is again decling.... or you already sold in grey earlier.....
Thanks

Yep. I am still availing funding.
GMP is not the only criteria. GMP is misleading many times. Also, I never deal in grey, involves lots of cash and needs trustworthy people to deal.
Since funding cost will be minimal and i will have huge quantity, i am going to get good returns. Risk to reward ratio is favourable as per my views.

@ipo sponks
Who will buy higher than 650 plus on listing day. The person who wants to buy that day can buy it in the IPO. HNI subscription unlikely to cross 10 times which is equal to 6450 crore (big money in current times with limited funding)
Very interested to understand your logic

Really, is there funding for this. I doubt it due to bank strike

@Kishore S
Yes there is funding for this. Bank strike is irrelevant, net banking can be done.
Let me explain it to you: when an investor avails funding, majority of the times and majority of the investors have to give margin and interest money before the last day of the IPO. And in case of good IPO’s where demand was extreme (ex- Nykaa, Clean science) they took margin and interest money even before the first day of IPO. For the current IPO I have already given them 80% of the amount and remaining I’ll transfer tomorrow.

@arunARUN
I think this FPO as an IPO, since the float is 1% only. So many retailers and mutual funds will be interested like me to buy shares of Ruchi Soya. There will be demand for it. And if it lists at 650 only, still my loss will not be huge.
In stock market we always invest money in a stock on its future trajectory. We always value the stock on its future earnings. The past has a limited relevance only. Don’t know why forum members are cribbing about its past.
Even if I loose money it will be worth taking the risk.
The company is going to repay its debt. It spends Rs. 350+cr on interest. FMCG company will grow in the future. The profit y-o-y will rise.

Brother, even I've applied for HNI. But No GMP is getting me all worried. with only a 10% margin, only a 10% lower listing can get all our money wiped out....!! is it likely to happen?

@ipo stonks
Thanks for the clarification. I heard the funding company submits physical application form on our behalf on the last working day. If there is bank strike, it becomes difficult to submit the physical application form.

@Ujjwal
Buddy this is not how HNI funding works. If you give margin 10% and on listing day it lists at 10% lower circuit, you will still have 90% of your investment.
I have applied funding for 10cr, expectations is I’ll receive 1cr worth shares. So if shares are locked at 10% lower circuit. It will be on shares alloted.

@Kishore
It’s NBFC’s responsibility to submit my application. They submit it in physical form or online it’s their lookout.

I also take HNI funding from bajaj but I avoided this one as I don't have experience with FPO and can't take much of a risk right now. What numbers are you expecting? In terms of profit and loss.

Do not short..there is no easy money in market..

No
You cannot get.

It is an interesting question. Company has right to reduce issue size to extent of 10%. Yes if 90% is not filled at 650 price band then company would go down rupee by rupee till it gets 90%
However unlikely scene

Thanks for your precious reply
I am thinking for 25 retail Application but little scared by the response of this fpo.
Please also guide in this matter

@Harsh,
As pet my understanding, there will be no lottery system for HNIs. HNI shares will be split ,33% upto10 Lakhs applications and 67% for more than 10 Lakhs. Anyhow, as per current rule, if number of lots applied is < subscription, then it will be automatically lottery.

Subscription will be less as HNI funding is limited to 1 Cr, however they can go with multiple applications.

@suneel plz read the SEBI Circular carefully , it says NII allotment will be on basis of Draw of Lots as is the case with Retail currently. Thus lottery system unlike proportionate allotment earlier for NII.

@Harsh,
Might be I'm not aware, how does lottery system works for the person who applied with 100 lots vs 1000 lots. In retail, everyone will get 1 lot in lottery if subscription is more than 1X.
What is the rule with HNi? Is there any minimum lots HNi will get?

@suneel: you can go through below link for more understanding regarding new HNI allotment rules applicable for ipos opening on/after 1st april.

https://www.chittorgarh.com/ipo/ipo_discussions.asp?a=1217&c=496184&ap=0

https://www.sebi.gov.in/legal/regulations/jan-2022/securities-and-exchange-board-of-india-issue-of-capital-and-disclosure-requirements-amendment-regulations-2022_55351.html

Lottery system is like retail. Allot all HNI application lot equal to 2 lakh or 10 lakh. If shares are left then prorota

@arun, @lokes
Is this rule applicable for RUCHI FPO?

So in effect, all the allotments (Retail, small HNI, large HNI) will be through a lottery in an oversubscribed issue.
Thus, as we do currently in retail applications in an oversubscribed issue, that is apply for only 1 lot, will it make sense to apply for bare minimum lots worth 2 Lakh in 2-10L category and for lots worth 10 Lakh if we go for >10L category? If I am correct, only after distributing min shares to all applicants as per their category (1 lot to retail, 14 lots to small HNI and 67 lots to large HNI), if any shares are left, then only proportionate allotment will be made.
So, no use having in reserve, money worth more than 10 L for IPO application. Or may be wrth more than 2 L for many of us.
It will certainly take some courage and confidence to have any IPO share worth more than 10 L in one go.

@ObserverEye Exactly what I wanted to say ... Large HNI will be very carefull in applying. Good for Capital Market, it should be healthy. Gone are the days of 300-500x OS

Thanks @Harsh and @Lokes.
This is significant changes in terms of getting number of lots for HNI application(2 to 10Lakh) and >10 Lakhs.
Interesting days ahead...let's see.

@kookaburra
Ask your stock broker.

Sell in market and apply fpo

@bAAz
And keep on paying auction charges. Delivery cycle is T plus 2. In auction you will end up paying through your nose. Existing 1 percent is already cornered

@arunARUN ji, I am also about to do the same stratergy, apply in IPO 4 lots, and do short-selling everyday of 84 shares. As I will do this first time, would you please enlighten about your comment, about auction charges? I'm planning to short-sell every morning around 10AM and square off the trade around 3:15PM.

I'm under the impression that:
If stock price goes down => I'm in profit because I've shorted.
If stock price goes up => I'll book loss. I assume that, I've already got 84 shares @650, so overall I'm in profit even if stock price goes up, as underlying share price is increasing. So my loss is only brokerage in this case.

Please enlighten us on this. Thanks a lot in advance.

@techuser
Your strategy is a day trading only. Supposed on 10 shares you incur daily a loss of 20 Rs only. Which for balance 6 working day will come to 120 per share. Which means your cost on day of listing is already 770 (650+120). Who gives the guarantee that listing price will be 770 or above for you to make profit?
You are better off to buy in IPO and take a pot luck on day of listing at least you don't have carried forward losses till that day

@arunARUN ji, thanks a lot for your reply, that helps to understand a lot of things!

@arun brother correct me if i am wrong, on short selling & price going down Rs 20 each day(Profit), your cost will be calculated as 650-120=530
On the other hand if prices moves up after short selling incurring Rs.20 loss daily your allotted shares will be sell at 970-120=850

pl conside 20% margin when you short shares
ie if you sell 21 shares you can only buy approx 17 shares on the same day
ie approx 4 shares less also you can buy 4 shares next day
cash margin is required to buy 4 shares ie 4 * rs (cost of share ie rs 650 or 750 or rs 600 depending on the value ) ie rs 3000 approx