SKS Microfinance Ltd IPO Message Board (Page 26)

Bajaj Corp seems to be the best bet of the last lot of IPO's namely EIL, SKS and Bajaj. Its single brand asset (Almond drop) kept me away from applying but seems that market has developed liking for this issue paticularly HNI's. It may give return of 20% upon listing (gain of Rs.120-130 per share). If it happens, which seems very likely, I may have to nurse my wounds.

EIL has started to unravel the story of NMDC but I still feel it could give listing gain of Rs.20/25. But here I would not repent for my applying at lower band instead of at cut-off as I have certain reservations against PSU stocks and FPO in particular which has never given me gains in the past.

As far as SKS is concerned, some negativ news flow may impact its valuations post listing. Recently RBI has taken note of MFI loan book of Rs. 2600 cr. from 40 Banks @13%. In its meeting with Bank oficials, RBI has expressed displeasure of lending to profit making MFI's which relend the money making double digit profits. The pricing of the issue has also come under severe attack from various quarters and super normal profits made by Mr. Akula (an NRI)in the name of helping the poor of this country has come under scanner. I think one or two more of such adverse reports in the press just before listing can mar its prospects on the bourses hence to me it looks set to disappoint upon listing. It may not fall below the issue price of Rs.935/- but gains are also more or less capped.

So I'm eagerly waiting to see the end result in that order.

SKS MICROFINANCE LISTING DATE 16 AUG 2010 MONDAY

IPO Judgment Day

Expected Minimum Gain on Listing Day


EIL
SKS
Bajaj Corp.

Cost of Retailers (Rs)
275.50 (Rs. 290-14.50)
935.00 (Rs. 985-50)
660.00

Over Subscribed
2.99 times
2.50 times
6.62 times

Allotment Expectation

(Rs. 1 Lak Application)
115 Shares
35 Shares
22 Shares

Listing Price (Expected)
Rs. 310 to 320
Rs. 1025 to 1030
Rs. 725 to 730

Minimum Gain � Approximate

(Rs. 1 Lakh)
4000 to 5000
3200 to 3400
1500 to 1600

Hi All,

I have applied for 3 lots (21 shares) of the SKS IPO. Can some pls tell me how many shares can I expect to be allocated for me. Also any guess on the listing date?

Successful IPOs lead to grey market premium on retail shares
Press Trust of India / Mumbai August 08, 2010, 15:27 IST

Better-than-expected performance of recent public offerings has evoked a flurry of activity on Dalal Street, albeit behind the scenes, as a number of shares allotted to retail investors are being sold in advance at a premium as high as Rs 90 a piece, industry sources said.

These off-market deals, known as 'Grey Market Premium' among the investing community and viewed as a sign of market prosperity, are done on the expectations that the shares would out-perform their IPO prices when listed on the market, the sources told PTI here.

      
      
      
      
      
According to a source who works with Institutional sales division of an FII, as on August 3, the premium offered on the shares of FMCG major Bajaj Corps Ltd was huge, in the range of Rs 85-90. The price band for the issue was Rs 630-660 and it was oversubscribed 19.29 times.

The shares of SKS Micro Finance were offered a premium of Rs 63-65, while shares of State-run Engineers India (EIL) were offered Rs 9-10 premium per share, he said.

Similarly, shares of Midfiled Industries attracted Rs 18-20 above the issue price, while those of Prakash Steelage were offered Rs 3-4 above the issue price.

"Some Institutions and Ultra HNIs are buying these shares at such higher premiums, expecting that these shares will out perform the IPO price band plus the premium they have paid," a top official of a broking firm said.

These buyers think that the value of certain stocks is more than the issue price. So, they start collecting them even before they are allocated by the issue registrar through IPO allotment process, or before the shares are on the stock market, the official said while explaining the modus operandi.

It is mostly brokers who act as middlemen of these grey market deals, as they have the direct knowledge of their clients who apply for such public offers.

In every initial public offer/follow-on public offer (IPO/FPO), the retail buyers take a financial risk as the shares may list below the issue price. When they are offered a premium, most of them normally encash the opportunity.

The middle men may get a commission of 2-2.5 per cent of the premium on an upper side, he said.

On the other hand, sometimes there are more middle men involved and not all know to whom the shares are being sold.

"I have got an offer to arrange 3,000 shares from the retail subscribers of SKS through another broker. The premium offered on SKS was Rs 63," a medium level broker who did not wish to be named told PTI.

Dear 812,if anyone had applied for 98 shares, then he will be allotted 34/35 shares.98/2.81.

@813/812AJAYSHARE
MANY THANKS FR YOR REPLY
BUT CAN U GUEESS IS THERE ANY POSSIBLILITY TO RECEIVE ALLOTTMENT OF SKS WHO BID FOR 7 SHARE (ONE LOT ) CONSIDERING THE 13.5 TIME SUBSCRIPTION......

@811/VINU G : Retail investor getting share at 935/-. (Discount of 50/- rupees per share). Your 50/- per share will come in you bank or cheque of balance amount.

@811/VINU G : If you applied for full 98 shares then yo will get sure allotment. may be 56 or 62 shares. so relax

dear can any one of u could confirm allotment date of SKS ..... and how can i check..... i have subcribed for only 1 lot.....@985/share....would there be any chances to get the stock at ipo price????
waiting to have your feedback pls. Am very fresh buyers for stock .... hence requested help and update please......

share will touch near about 1125/- and then market will start down side and will touch 5100 nifty. maximum market will go up 5525 nifty. (In next twenty days).

I agree with Neeraj, there are fair chances of listing of share at 50-65 premium

It will list at a premium and go atleast Rs 200 above issue price on first day itself.

Dont go by rumours. It is a niche player like jubliant foods, mahindra holidays, cox and kings etc. Therefore it is bound to command premium. Big investors like niche players

good long term bet

there is every chance that SKS will list below its issue price, any comments?

ONE LAC APP HOW MANEY SARAE ALLOTED

company-: SKS MICROFIN,
BV=140
Profit only for last three year,
EPS Rs-25
LOGICAL PRICE CAN BE Rs 280
BEING A FIRST GENERATION COMPANY A DISCOUNT OF Rs 30 ie price per share shall be = Rs250

Sine I am ameture, I want to assess this script for next 10 years without buying a single share. This will add value to my experience.

sks allotment was out on 12th or after 12 august and this will list on 16th august on exchanges for trade with price above 1050 so keep aplying for ipo of good rating

Recent listing gains trigger frenzied action in grey market
6 Aug 2010, 0234 hrs IST,Apurv Gupta,ET Bureau

MUMBAI: The activity in the ‘grey’, or the illegal, market for public issues appears to be hotting up once again, if brokers dealing in this segment
are to be believed.

The decent listing day gains in some of the recent public offerings, and the strong institutional response for issues of companies including SKS Mircofinance and Bajaj Corp has fuelled demand from high net worth investors in the grey market, brokers say.

For instance, Bajaj Corps’ shares are trading at a ‘premium’ of Rs 58-60 in the grey market. The grey market premium, which is the price above the issue price, is an indicator of the price at which the stock is likely to list. Similarly, shares of SKS Microfinance are trading at a premium of Rs 67-70. Others like Prakash Steelage are trading at a premium of Rs 5-6. According to brokers, the premium has been inching upwards over the past few days on back of firm markets. The Prakash Steelage issue, which opened on Thursday, has already been fully subscribed on the opening day of the issue.

Bankers also see it as a positive development as they feel it may help in a strong primary, going forward.

SOMEBODY PLEASE MENTION THE RIGHT THING ABOUT EXPECTED LISTING OF SKS MICROFINANCE.