Shekhawati Poly-Yarn Ltd IPO Message Board (Page 26)

Dear Gem,
Still holding allotment of Va Tech.It's moving between 1400-1500 after touching 1800 post allotment.Should I exit or hold it for long term?

Dear Sreedhar,
Today SAIL price has fallen by almost 10Rs. SAIL FPO could be priced around 150-160, in what was understood from CNBC TV 18. If that is so, with MOIL not living up to the expectations and SCI failing, do you think the Govt. would allow SAIL price to drift down further?

Refer 25.Routray Dec23,2010 2:24:07PM IST
Sorry SAIL target not PSB target.

Dear Sreedhar,
Had asked you post770 PSB regarding your PSB target. Am new to this blog. Seeing your SAIL shorting post, I also had shorted SAIL yesterday at 196. Since I din find any reply from you, I bought it back at 195.30 earning me about Rs518. May be if I wud av got your reply, I wud have benefitted more by now. Thanx anyway.

Dear sreedhar\Natarajan

Thanks for your reply.I hope we can wait till 29th morning for the shekhawati ipo.please confirm your booking on 29th morning , so that we can apply on the day.
Thanks
venkat

Very expensive issue. Toatal equity about 22 Cr (2.2 Cr shares of FV 10). Half yearly profit is only 1.57 Cr. So on annualized basis the EPS comes Rs. 1.5-2 (considering any possible increase in profit). So, it translates into P/E of 15+ at issue price. Too expensive for such a small company. Many better textile companies are available at much cheaper valuations in the secondary market.

Dear Natarajan,
Lets wait for some more time

Dear Sreedhar,
I am positive about Shekhawat as I think it is reasonably priced and almost all the fixed priced issues have given good returns. Here, I fell there risk is too small and the reward could be great. So I am going for it.
One more thing. I too have shorted SAIL futures 2 days back at 194.70. It is at present around 192 is cash market. Will it be better to wait in view of the forthcoming FPO or to cover when an opportunity arises?

Hi Frndz,
30 rs is too expensive for this ipo, look at their PAT (profit After Tax) is not even 10% of the total income. So what share holders will get? According to me its fair value is around 15 to 17 rs.
So avoid this ipo.

This is my opinion. I will avoid this IPO. Also look at the objectives of issue (4 & 5) i have not seen till now this type of objectives

Dear boarders,

I would like to apply a small amount in Shekawati ipo via physical application. As the registras is new to me will i get my refund in time and is there any complaints registered under the registrar earlier.

Can some experts/boarders throw some light on the same as i do not hold asba facilitiy.

apply for ipo premium Rs8 only buyer,and no ipo in near future.go for apply

Dear Geeves,Apply in Shekawathi.I am applying for it.

Hi sreedhar\Natarajan

can you suggest some good ipo and secondary stocks for the coming week.
thanks
venkat

Dear Natarajan,
Here is an article on Koutons retail in economic times:Felt you may be interested in this:
http://economictimes.indiatimes.com/news/news-by-industry/services/retailing/debt-struck-koutons-in-talks-to-shed-15/articleshow/7148049.cms

Are you applying for Shekawathi???

Fixed pricing is the traditional method in IPOs. They are weak in two directions: one, dubious issues get overpriced and two, good issues get underpriced. The problem with them is that the demand is known only after the close of the issue.
I remember Gallant Ispat, which many did not apply, gave good returns. I could not apply as the bank which was to collect the applications was not there is my city.
Gallant Ispat which was priced at 50, saw a high of 87 on the listing day which was not bettered so far. It is now ruling at 52.70, far better than many book built IPOs which have gone down much much below the issue price.
If I remember right, Dena Bank came out with a fixed price FPO in which the returns were minimum.

H ERO.

what is plan? how long you want to keep invested this money. if it is 1+ year plan then I would suggest to buy COAL OR MOIL on decline.

Good luck. I am holding 34 stock MOIL from IPO and thinking to add more.

shall i invest my money into this ipo or not i have only 27000 rs

Any one here with deep knowledge of this IPO? should it too risky? or for stock market gamblers? I think so. Remember song "Apne pe bharosa hai to ek DAV laga le....."

Friends,
Fixed price Issues are less frequent than normal bookbuilding Issues .As there is no new IPO other than Shekhawati I went back in time &       had a look at earlier fixed price Issues & observed quite interesting facts.Fixed price Issues generally raise very low amount which range from 15 to 50 Crores.Here are few articles:
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Here is an article in DNA Money:
With demand far outstripping supply, the price of the share goes up astronomically. Fixed-price IPOs in general have done much better than book-built IPOs. The listing- day opening price of a fixed priced IPO, on an average, was almost 55% greater than the offer price.

By the close of trading on the listing day, the price was almost 84% greater than the offer price. This answers the question as to why most of the big issuers of equity capital do not go in for fixed-price IPOs.

Research has conclusively proved that fixed-price IPOs, over the years, suffer from "IPO underpricing" i.e. companies obtain lower issue proceeds as compared to what it might have raised had it been to able to raise capital at the listing price.

The book-building method works much better as it allows the market to discover its own price.

But investors seem to have cashed in here. Investors who held their shares on an average, saw their investments grow by 122.74%. Of the 11 fixed-price IPOs, only Uniply Industries is currently quoting at a price below its offer price. Shares like FCS Software (361%), Nandam Exim (470%), Shree Ganesh Forgings (107%) and Cyber Media (103%) have given astronomical returns .

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Here is another article in Financial express:

Returns range from 75-370% so far
Fixed-price IPOs score over book-built ones:

The number of fixed-price issues that have hit the primary market in the last six months may be small, but these issues have generated much higher returns than those of book-built issues which are the order of the day in the IPO market.

In the first six months of calendar 2005, the three fixed-price issues which hit the market have generated returns in the range of 75-370%. In the same period, the returns from book-built issues have been in the range of (-)7% to 110%. Kamlesh G, executive director, Centrum Finance, said: “The lack of participation from Qualified Institutional Buyers (QIBs), lower bidding from high networth individuals (HNIs) and the relatively lower price of a fixed-price IPO are the three reasons for fixed-price issues giving higher return than the book-built ones.”

Of the three fixed-price IPOs of calendar year 2005, Saksoft Ltd has given the best returns as compared to its issue price of Rs 30. The stock closed at Rs 140.60 on Friday, June 10, 2005, thereby moving up by 368.67%. This apart, Mangalam Drugs & Organics Ltd and Cyber Media (India) Ltd have generated returns of 73.86% and 75.75%, respectively. Cyber Media (India) Ltd was listed on the bourses on Friday.

“In a book-built issue, participants, especially HNIs, invest in a large way mainly at the upper band to get maximum allotment. Most of the bidding is funded through margin financing and therefore after the allotment of shares, HNIs offload their stocks to capitalise on the premium as well as to pay back their loans. On the contrary, in a fixed price issues, the price is generally soft, which is why players after allotment are not in a hurry to offload their holdings on the hopes of a rise in prices,” added Mr Kamlesh.

Prithvi Haldea, managing director, Prime Database, said, “The quantum of floating stock is small and speculative activity in a fixed-price IPO is also low when compared to a book-built IPO. This is the reason for higher returns in fixed-price IPOs.”
On the other hand, follow-up offers (FPOs) — both fixed-price and book-built –– have given less returns. Dena Bank, the only fixed price FPO of CY 2005, has given returns of 7.59%....

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Some of the fixed price Issues I found out from Chittorgarh site itself:
Samyabiotech Fixed price IPO:
/ipo/ipo_boa.asp?a=126
»» Issue Open: Sep 25, 2007 - Sep 28, 2007
»» Issue Type: Fixed Price Issue IPO
»» Issue Size: 15,000,000 Equity Shares of Rs. 10
»» Issue Size: Rs. 15.00 Crore
»» Face Value: Rs. 10 Per Equity Share
»» Issue Price: Rs. 10 Per Equity Share
»» Market Lot: 500 Shares
»» Minimum Order Quantity: 500 Shares
»» Listing At: BSE
Listing Day Trading Information
BSE
Issue Price: Rs. 10.00
Open: Rs. 17.50
Low: Rs. 13.85
High: Rs. 24.35
Last Trade: Rs. 15.30
Volume: 30,097,931

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Burnpur cement:

Issue Detail:

»» Issue Open: Nov 28, 2007 - Dec 03, 2007
»» Issue Type: Fixed Price Issue IPO
»» Issue Size: 31,825,100 Equity Shares of Rs. 10
»» Issue Size: Rs. 38.19 Crore
»» Face Value: Rs. 10 Per Equity Share
»» Issue Price: Rs. 12 Per Equity Share
»» Market Lot: 500 Shares
»» Minimum Order Quantity: 500 Shares
»» Listing At: BSE, NSE

Listing Day Trading Information
BSE
Issue Price: Rs. 12.00
Open: Rs. 18.45
Low: Rs. 17.80
High: Rs. 49.00
Last Trade: Rs. 46.35
Volume: 117,215,856
NSE
Rs. 12.00
Rs. 15.00
Rs. 15.00
Rs. 50.50
Rs. 48.05
152,748,815

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Most recent was Gallant Ispat:This IPO gave max returns:This IPO came when there was IPO market flood with Issues like careerpoint,Eros,Ashoka,Tecpro,Vatech etc & hence was subscribed only around 1 time in retail but still blew the fuses off.
Issue Detail:

»» Issue Open: Sep 22, 2010 - Sep 24, 2010
»» Issue Type: Fixed Price Issue IPO
»» Issue Size: 8,100,000 Equity Shares of Rs. 10
»» Issue Size: Rs. 40.50 Crore
»» Face Value: Rs. 10 Per Equity Share
»» Issue Price: Rs. 50 Per Equity Share
»» Market Lot: 125 Shares
»» Minimum Order Quantity: 125 Shares
»» Listing At: BSE, NSE

Listing Day Trading Information
BSE
Issue Price: Rs. 50.00
Open: Rs. 48.90
Low: Rs. 48.80
High: Rs. 87.40
Last Trade: Rs. 81.60
Volume: 51,419,283
NSE
Rs. 50.00
Rs. 52.00
Rs. 49.00
Rs. 87.00
Rs. 81.05
75,365,403

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GANE

range for this week should be 445-485 as only 2 days left in this week.

i m very happy to see that the bottom has been tested @ 439 for short term, tommorrow it may consolidate and can TRADE @ 450-475.

it has started its up trend. it was artificilly kept low by some big operators , it has similar patterns like UBI and ITNL that where also kept low for some time post listing and accumulation happend and then the share price blasted similar will be the case in MOIL.

its really a unique co read the DRHP once again u will get the feeling, how many cos are there with nearly 50% NP margin and fairness of govt a/cing.

mind it, it will follow coal india in terms of price movement despite both are in different product.