A: We have room for going in for a further issue of about Rs 4,400 crore or so. We do not have a fixed timeline on when we will be coming back again to the market. However, since this issue qualifies for tier II rating and we do need capital from time to time. So, we will be visiting the market, though the exact time has not been finalized yet.
Q: What does the issue do to your capital adequacy ratio? It is at present, somewhere northwards of 13% or so, how would that change?
A: The existing capital adequacy ratio is 13.16%. This issue has increased the capital adequacy by 70 basis points. Therefore, it will go up to about 13.86%.
Q: You have plans for any future bond issues this year then?
A: We do intend visiting the market because the requirements for capital will keep arising from time to time. Since, we already have some room available under the existing approval for going up to another Rs 4,400 crore or so, we will be visiting the market. However, the time and other details have not been finalised as yet.
VAS NAT ., WHAT IS GOING WITH SBI BONDS SERIES 3 AT 10051
SBI BONDS SERIES 5 IS STRONG NO BODY HAS APPLIED LESS MEMBER BROKERS ADVICED ALL TO APPLY FOR 9.75 % WHO HAS SEEN 15 YEARS APPLY FOR 10 YEARS THIS IS WHY WRITE IN THE NAME OF FOOLS BROKER
Company is demanding a P/E of 16.04 which is totally not acceptable. The other Constraints for the company are losses incurred during the past years, high debt of about 86 Crores, liquidity crunch leading to delays in repayment of term loan installments and high working capital utilisation and relatively high gearing. The grading is further constrained by very short track record of the company in manufacturing of RF cables, volatility in raw material prices and increasing competition from the domestic and international players.
We will urge investors & traders to Stay away with these kind of issues. The issue is very small of only 55 crore. Don’t be surprised if any Operator play this IPO. Just be sure that you are not playing with him by participating even after listing for this IPO.