Sai Silks (Kalamandir) Ltd IPO Message Board (Page 2)

I AM NOT APPLYING...

HOW MUCH TIME DAY 2 KOI TO BATAO

I would advice investors to not base their investment decisions solely on the safety net scheme. The company faces intense competition, has diversified into unrelated area of wind power generation, and has a high quantum of related party transactions. The fundamentals of the company are average but the valuation is slightly expensive, with no upside potential in my opinion. Read my detailed analysis on the IPO to get a better idea.

Saree business will never die in India.The valuations also look ok.safety net is a bonus.
Not really sure why ICRA is so negative.

Under the proposed ''safety net'' norms, Sebi has said that the companies making initial public offers could be asked to mandatorily refund the money to small retail Indian investors, if the price of the shares plunge by more than 20 percent

investing in ipo is nothing but rolling your money,if listing bellow price it will take 6 month to rollback,1 can play this game with 6 month wastage of time and for 0 return,since no chance of listing gain seens,promotar also in no problem zone when listing is top priority.

I don''t think the rule is after 6 months .. the rule is anytime if it falls below Issue price within 6 months. So if the stock is not performing well, I might chose to exit after 1 month and not keep my money blocked for 6 months.

Anyhow, does anyone has clarity that how do we ask the company to buy back the shares, if it falls below the issue price.

Also I heard that a company came with the same buy back rule around 6 years back .. how did the shares of that company performed (especially first 6 months)

Dear Chittorgarh Member,

Previously the allotments were proportionate. But now this is not so. Now the process is GUARANTEED ALLOTMENT, which is lottery system. So no point investing with bigger applications, they will have same rejection ratio as of single.

HI VIKAS, I AM DSG FROM DELHI TOTALLY AGREED WITH YOUR VIEWS. HATS THE HARMS IN INVESTING UPTO 1000 SHARES. WORST CASE THT WE WLL GET OUR MONEY AFTER SIX MONTHS. BUT WE HAVE CHANCE TO GET EXIT EARLY IN CASE PRICE RAISE AS PER OUR EXPECTATIONS. ONE THING I WANT TO SAY THAT PLEASE NEVER TAKE ANY ADVISOR ADISE BLINDLY MOST OF THEM ARE MANIPULATORS AND NO ONE KNOWS BUT HAPPENS 5 MINUTES LATER? THANKS NB PLEASE SHARE YOUR VIEWS 9891026578

PLEASE SUGGEST THAT WE HAVE TO APPLY OR NOT

Hi Vishal Maheshwary,

What is the change in allotment process?

Vikash frm London has raised a very logic query. Certainly there can be no loss in this issue. But due to the change in allotment process it is not worth applying more than single application. We can certainly see listing gains in this issue.

I am little confused, most of the articles I read on internet, said that this IPO has been given low grading by Care, the fundamentals are not that strong and issue size is too small - so retail investor should avoid this IPO.

But my argument is, if there is safety net then why the hell should I waste my time reading fundamentals. The worst case is I will get my money back (due to safety net funda) and best case the operators try something adventurous and I might get good return.

The practicle and most probable case will be company/ fund managers will try to keep the shares at above market price and I can exit with some premium.

So anyone can give me a good reason why being retial investor I shouldn''t apply to this IPO ?

As per data available in prospectus..this company has shown rapid growth in last 7 years..safty net will ensure that i dont make losses..The positive point is out of its 15 outlets in south india all the outlets are on lease, that means promoter is gonna invest all the IPO money in the business and not in fixed assets...being a long term investor i am hopeful about this issue...

From same BRLM we have yet another IPO of Vishwanath Sugar coming in last week of February 2013. Details waited for

according to track record almost 90% shares under lead manager Ashika Capitals Ltd were flop on listing day & were on discount on Ist day

Take opposite call to what ever Dilip Davda says. This time he has said "Avoid" for this IPO. I think investors now know what to do. Davda ji ka track record kafi khareb chal raha hai. His current record is out of 9 recommendations 6 are wrong.

The company is operating through 15 Retail Outlets in South India under the brand of Kalamandir, Mandir and Varamahalakshami. The company has recorded Rs. 262 cr of sales in FY 2011-12 and for the 7 months ended on October, 2012 the company booked the sales of Rs. 168 cr. The company is earning a good return at 4% - 5%. For FY 11-12 EPS Rs. 5.78, ROE 24.86%, ROCE 41.10%, Book Value Rs. 24. Looking to the growth of the company, the IPO price is at a very low PE of 13x compared to other listed companies. CAGR in Revenues since 2008 to 2012 is 41.92% and PAT is at 80.59%.
So it is worth subscribing and investor will not loose their hard earned money as SAFETY NET ARRANGEMENT is available to all Retail Resident Individual Investor. After CARE IPO i think this is a very good IPO. So all must subscribe.

Can you please teach how to calculate P/E to Davda (4). He says its 20. Which one of you is correct.

Good IPO with the first every Safety Net scheme. This means the promoters are genuine. No loss to the investors.

This is a very good IPO. I think this is the 1st IPO with Safety Net Arrangement. So promoters seem to be genuine. Investors are safe up to 6 months with regards to their investments. I believe this is worth subscribing.

should we apply or not