SKS Microfinance Ltd IPO Message Board (Page 27)

The objective of any new issue is to achieve the highest value for the issuer, while ensuring a buoyant start to secondary trading. IPOs provide opportunities for traders who buy in anticipation of an immediate price rise. Good IPOs are often oversubscribed, leaving the sponsors to decide on the appropriate equity allocation by giving preferential treatment to certain investors, typically their favoured clients though in some cases the private investor.

Sometimes IPOs come with incentives for the private investor, and positively discriminating against the institutions / HNIs / retailers in terms of allocation and even price.

New issues are often viewed as a route to quick and easy profits, but for every ten or so successes, there is usually five that goes wrong or seriously fails to perform.

Companies that have recently reported very good results or which are in fashionable industries with their best results at an indeterminate point in the future should be scrutinized especially diligently- SKS Microfinance, Talwalkars, Jubiliant Food etc.

Investors should also note that conflicts of interest and potential abuses are rife in the distribution of new issues. IPOs are inevitably timed to benefit the seller not the buyer, aiming to extract the maximum value from the market. Indeed, most IPOs are usually not good investments, underperforming the market over the longer-term. This may be a reflection of companies 'preparing' the numbers for a couple of years, and underwriters over-hyping and brokers overselling the shares. Such activities may be particularly prevalent in the late stages of a bull market.

Promoters are smarter than the market and thus good at timing, taking advantage of 'overpriced' stock. Another point is that promoters manipulate earnings, past and forecast, dressing IPOs up for sale. While analysts advising investors should spot these exaggerated figures, they are paid by firms in the business of selling IPOs. Brokers are typically rewarded with double and triple commissions for pushing new issues, and their firms earn handsome fees for advice, structure, pricing and support to market. Brokers advice to customers who have bought the stock is often one-sided. There is little evidence that issuing houses will make sale recommendations to customers who have bought the new issue even if such recommendations are warranted. And if an analyst forgets and does recommend an action counter to the distribution, that analyst will have new opportunities to explore the job market.

The deck is stacked against retail investors. Unlike other firms, IPO issuers are explicitly permitted to restate their pre-IPO financial statements, which many IPO issuers use to show accelerating growth. In addition, like many other firms, IPO issuers can be 'generous' in their manipulation of reported earnings. In fact, 50% new issues are underperforming broad-market post March 2008 bull-market cycle.

BUY UCO BANK CMP: 97.10 TGT : 112
THIS IS A SURE AND 100 % ASSURED TIP FOR INVESTORS.
SO, HAPPY INVESTING AND HAVE A MONEYFUL DAY.

bUBALOO

thanks, and same to you

Why are you guys trying to tear each other's shirt? Just relax and wait till listing.

We have had bad experience like ganesh jewellery and also positive surprises like Jubiliant food and Talwarkar's. Only time will tell which way this company will go.

SKS promotors have given money to QIB's and NII's for application, which has come back to them already. Now they will eat up the money of poor retail investors. seems to be a scam in the making

mujhe bhi lagta hai yeh shree ganesh jewellery ka baap niklega aur listing ke baad 50% discount par milega.

Setu Jian toh paagal hogaya hai kyunki usne 10 application laga diye hain aur retailers ke liye 300 ka premium de raha hai jabki aaj ka premium 60 rs se girkar 30 rs reh gaya hai

SJ Wait for 16th August you will not show your face on that day.

Disclosure: Have applied for Engineers India and Bajaj Corp IPO because prcing was correct and left something on table for investors
Not applied for SKS Microfinance because of expensive valuation. dont want to give my hard earned money to greedy promoters to pay them 300% premium and run away

DEAR IPO EXPERT

I am not fooling anybody.....ok..!....i have given my figures as to why it will go..1200....read earler posts....i cannot...post that again and again..for every single boarder......u invest in safe stocks....i will invest in SKS,.....which is high growth sector and at nacent stage..!

no more arguments...u can launch as much attack

Setu Jain so can you explain why are you saying it will be 1200 on listing when both grey market and even expensive valuation are against it. please come with facts and not make hawai mein kilen.Please dont fool others.

remember why should i not go for safe stocks with not risky business model like recltd,power finance which are trading below 15 p/e instead of company which provide loan of 2000-12000 to poor and which will not be able to sustain its profits in long teram at same rate when govt banks are now providing loans to poor easily now going forward

@ 790 IPO EXPERT

GMP is bound to go down...coz retail was just 2.5..so retail will get half shares why wil they buy in Grey market.....?

Instead of calling other boarders fool...first think whatyou are saying urself is baseless...

As per 300 to 900 i have already given several facts why 300 has gone to 900..why dont u check my previous posts....

U will see it 1200 easlily on listing

Any ways why shud i explain...u think other people are foolish....and u are the most intelligent...no point aguing wth u....

tO ALL THE FOOLOSH HEADS SJ AND OTHER grey market has dropped significantly to 35 rs only and by the time of listing it will be at discount due to expensive valuation. As i told everyone promoters have been succesfull with return of whooping 300% in less than 3 years .

i dont know abt listing day but this stock will reach to its correct price of 650 rs after ipo listing.

Engineers india was much safer and good company with best fpo price.

i apply 80 in eil & 28 in sks how much can i get

missed out specifying ..120 shares is in EIL,and 35 shares is in SKS

Please someone answer my question .I have applied 120 shares at cutoff in retail and 35 shares at cutoff in retail,how many will i be allotted(in your opinion).Expert boarders pls reply

Hi ,I have applied for 35 shares of SKS,and 120 shares of EIL,pls tell me hw many will i get alloted in each if any

@SJ: yes traders doing lot of activity...scary a bit too...they will pull it down and spike it by aug middle...i think they announced decision to split FV1 but not yet come out with a date..that should be a trigger....but yes have to have enough patience as stock will be volatile so will be tempted to trade...

SKS Microfinance ipo gray market listing price
Gray market price of SKS Microfinance ipo is Rs1100 – 1140. in some market it is Rs1200 where people giving 6 times book value valuations to SKS Microfinance

@783 Raj

Kedi reliable news....Sirji.....Jara Hund bhi to dasso..hum bhi..usi rate vich bechan laga denge ?

it will quote around 1450 news from reliable news

[779. SJ]

yes i am adding to discount of Rs50+35 to calculate 85 premium