100. R R Patel| Link| Bookmark|
September 15, 2017 7:23:50 PM
IPO Mentor (800+ Posts, 3400+ Likes)
Average cost of acquisition of Equity Shares for both the promoter selling shareholders SBI & BNP Pariba Company is Rs.10 per equity share whereas the upper end of the price band is significantly high at Rs.661 per equity share.
Another aggressively priced IPO. Good company but spoilt opportunity due to unreasonable pricing.Actually it is better to take positional calls in secondary market than to invest in such IPOs.
Manjit paaji ta Umang ji, icici ka lia ja sakta ha ?? As Sbi over priced ha with so much liquidity of retail.. so app dono ki rae icici ka lia kya ha ??
Reliance Power IPO has come up by few of the members and it made me look into it what happened at that time. I am sharing it here for those who are not aware about it like me till now.
Reasons: 1) Reliance Power was a new company. It had almost no assets and cash flow. It was riding on the Reliance brand name and also the euphoria in India''s stock markets. 2) Indian investor considers IPO as a means of making quick money. The shares are sold out immediately on opening of the issue. This may be a reason of the Reliance Power debacle.
3) IPO was affected by the global market mood ( US sub prime mortgage crisis). Between January 4, when the IPO was announced, and the listing date of February 11, the benchmark Sensex index fell over 4,000 points, or almost 20%, from historic highs of around 20,686 points to 16,630.91 points
4) It was observed that few Mauritius-based foreign institutional investors (FIIs) and a domestic bank offloaded almost their entire shareholding in the company within minutes of the opening bell.
5) Reliance Power''s downfall was linked to aggressive pricing of the IPO. Analysts suggested that it was overvalued when compared with peer companies in India. For instance, the IPO price was 450 against the price of NTPC, (the government power company) at Rs.250/-. RPL was planning a 28000 MW power plant in 2017 and did not have a single operational power plant whereas NTPC had 27350 MW of operational power plant in the year 2007. Comparison of the financials of Tata Power and NTPC also did not show a very promising picture of RPL.
P.S: Above reasons are neither analysed nor edited by me. I found a case study online so just shared the pointers here.
Sure list under price Reason 7000 cr a big issue So alloted to avery one who applied So no buyer remain in market So so so so so avoid it Same as icici prudencial life insurance
Is there any additional quota for SBI share holder ? If yes than can he apply both applications regular & quota application in same name and same demate account number.