SJVN Ltd (Satluj Jal Vidyut Nigam Ltd) IPO Message Board (Page 13)

i have applied under retail investor 500 shares at CUT OFF price, but not allotted a single share. can anyone give the possible reason. application no 13939293

Gray market primium drop rs. 1 , ahmadabad market only seller no buyer.

Satlug : 27-28 listing

Grey market premium is rs 1 to 1.50

excellent stock to hold for long term

Short term target : 35
long term (1 year) : 50

I have allotted 1269 share can u advice what is the actual rate of this share on listing day.

By Ruma Dubey



Standard Chartered Bank or ‘Stanchart’ is issuing Indian Depository Receipts (IDRs) and hopes to raise about Rs.2,250 from the domestic capital market. And this is the first time ever that India will witness an IDR from a UK based bank or for that matter any foreign bank. The IDR issue opens on 25th May and closes on 28th May. The money raised will be repatriated to the global entity for normal business activities.


But then, what exactly are these IDRs? It is some what similar to American Depository Receipts (ADRs) which Indian companies issue abroad to raise money. And in the same way, IDRS are instruments used by foreign companies to raise rupee denominated money in India.


These are basically derivative instruments with shares as the underlying asset, which will be deposited with an overseas custodian who will hold shares on behalf of a domestic depository. IDRs will be issued through a public offer in India in the demat form and will be listed on Indian exchanges. Trading and settlement will be similar to those of Indian shares. 50% of the issue size is reserved for qualified institutional investors. Retail investors can subscribe upto 30% of the issue size. The minimum application size shall be Rs.20,000.


Ten IDRs will be equal to one equity share of Stanchart. It will be selling 22 crore IDRs, meaning, if it aims to raise around Rs.2250 to Rs.3375 crore, each IDR would be priced around Rs.105 to Rs.115. The prospectus of Stanchart gives room for a 5% discount, which will be determined by the benchmark UK pricing next week. So this means, each equity share of Stanchart, when it gets listed, will be priced around Rs.1050. It is expected to get listed on the Indian bourses in June.

An IDR holder acquires the same rights as a shareholder, except that he/she can neither attend the AGM nor vote on resolutions. NRIs can trade in the IDRs.


The biggest question doing the rounds is – what could be the tax implications for the Indian IDR holder? The good news is that IDR does not come under the purview of securities transaction tax. But the IDR holder will have to pay tax on the dividend income earned. It is not yet clear whether the tax payable would be equal to the Dividend Distribution Tax which for the current fiscal stands at 16.61%. So tax seems sure but the rate is yet unsure.


Then there is the question of short and long term capital gains tax. Currently, long term gains made from Indian bourses (stock held for more than 12 months) is completely exempted from tax while short term capital gains tax (stocks held for less than 12 months) stands at 15%. But the IDR does not fall under the purview of STT, so maybe it will not enjoy the same benefits as those shares listed on the Indian bourses. So this means that IDRs will be taxed like any other asset –long term tax when held for over 36 months would be around 20%. Short term tax, when asset is held for less than a year, will be like regular income earned, at 30.9%.


There is no real clarity yet on this treatment of tax but surely, the Govt will have to bring about a notification very soon. A quick resolution on the tax angle is urgent and imperative or else it could undermine the very lure of this IDR.

I have alloted 36865 shares ,i am new investor how i can sell it at maximum profit .

21.8 rs. Listing price fixed by its operater, interaday range rs. 11 to 22.10

Satlug to list at around 27.5

don't exit on the day of listing..short term target 35..

long term 50...

I have seen some ratings by reputed firms.

They have given 4 to SJVNL

CRISIL / CARE / ICRA / FITCH IPO Grading

5/5       Strong fundamentals
4/5       Above average fundamentals
3/5       Average fundamentals
2/5       Below average fundamentals
1/5       Poor fundamentals

hi uday, we had applied for svjnl @ 26from which we recd a discount of 1.3, in your case if the issue price would have been discovered at 25 you would have recd the shares at 23.75. as the price discovered is 26 you are not alloted any shares. you should have applied at cut - off rate.

I got 1269 Shares @ 24.7 of SJVNL. I had applied for 3750 Shares.
I have seen almost everybody's post here but can't get clear idea about the listing price. can anyone tell the realistic price for the listing and the price in GRAY market. can I hold it or sell on listing day?
I believe markets has crashed in last couple of days so FII and DII have CASH on hand so they may BUY it on listing day.

Please Reply.

Thanks.

but retailer get 5% discount means 24.7rs then why i am not getting any allotment even i apply at rs 25

683. Uday, Shares are alloted @ 26/-, hence you got entire money refunded.

Can any one post basis of allotment? Thanks in advance

i applied for 3 lots at rs 25 but i dont get any allotment the amount is credited to my account

THESE PARAS. ARE VERY IMPORTANT IN IDR APPLYING DECISIONS KINLY READ

READ THE 3 PARAS., FIRST 2 PARAS. ARE CONCERNED THIRD ONE IS THE SOLUTION


According to the red-herring prospectus, the legal regime for IDRs is still to be tested; investors in IDRs may not get to enjoy the benefits of a bonus issue or a rights issue; dividend income on IDRs will be taxed in the hands of the investors and long-term capital gains tax will be another additional burden.


Standard Chartered said it has agreed that for all corporate actions including voting, rights issues, the payment of dividends and other distributions, it will treat IDR holders on an equitable basis vis-à-vis other holders of shares in the home country (the UK). However, it pointed out that in circumstances where certain corporate actions, which are available to the holders of shares in the home country of the company and other jurisdictions where its shares are listed, are not permitted by Indian laws to be offered to IDR holders.


Standard Chartered Bank has said whenever the company and/or the depository is unable to make bonus issues or rights issues available to the IDR holders, the depository will try and sell the deposited property that is the subject of the distribution on behalf of the IDR holders and distribute the net proceeds thereof as a cash distribution to the IDR holders.

SOURCE DNA

Mumbai: Standard Chartered Bank is set to become the first foreign company to list in India through an IDR issue.

The largest foreign bank in India, which reeled in a billion dollar of profit from domestic operations last year (India is its most profitable unit after Hong Kong), will sell 24 crore IDRs through a public issue opening on May 25 - 28.

Ten IDRs will equal a share of Standard Chartered Plc.
Like GDRs and ADSs, IDRs are derivative instruments with shares as the underlying asset. They allow foreign companies to raise money in India.

StanChart expects to raise around $500-750 million (Rs 2,250-3375 crore) to grow its businesses globally.

Back-of-the-envelope calculation show an issue price of around Rs 105-115 per share.

This will be StanChart’s third listing — the bank’s already floated in London and Hong Kong; and it’s next stop is Shanghai.

Interestingly, the bank, which started operations in Kolkata in 1858, is not raising the money because it is desperate.

The IDR is to “a message of commitment to India”, which provides 12% of its global revenues.

“The issue will also increase our market visibility and brand profile, apart from giving Indian investors an opportunity to participate in our growth,” said Peter Sands, group chief executive.

StanChart’s net profit has grown at a compounded annual growth rate of 30% in the last three years, while profit before tax has trended at 38%.

Based on 2009 results, the StanChart share has a price to book value of 2, much better than the 2.5 for State Bank of India.

On the price to earnings metric, it trades at attractive 14.6 times compared with 15.7 for SBI and 29.4 for HDFC Bank.

The IDR is a play on fast-growing economies. StanChart focuses on Asia, Africa and the Middle East with 90% of its profit before tax coming from these markets. The bank has a presence across geographies with mix of wholesale and retail banking products. It has no exposure to Greek sovereign bonds. In India, it has 94 branches across 37 cities, with over 20 lakh customers.

price band would be announced by May 24 “depending on the closing price of the shares listed in the UK next weekend”. Bids from anchor investors would be taken on May 24.

Watt tujhe pata bhi fair price kya hoti hai. market chahe koi direction mein jaye sjvnl ko koi pharak nahi padta baecoz woh strong company hai woh listing wale din 40 touch karega. waise bhi is market isse sasta stock nahi milega kahin pe bhi.

tu dekhiyo listing wale din lic aur other big foreign investors khoob dabake kharidenge. last time lic ne jsw energy mein lagaya tha aur woh 1 time subscribe hua aur bahut bada issue tha phir bhi 25% issue price se upar hai.

yeh stoch 40 cross karke jayega

Satlug

grey market premium 3 - 3.5 rs

listing 28-29

i dont think market will have any effect on satluj listing.

since it is priced very good at 12 p/e it deserver p/e of atleast 20. i think it will list at 28 rs and will close day anywhere between 30-34 rs.it is a small issue comparing it with other psu which were 4000-6000 crore issue but satlu priced it so excellent and collected only 1000 crore.

i see this stock above 50 rs after 1 year.