SKS Microfinance Ltd IPO Message Board (Page 29)

@ Akash

stock is spilt from 10 to 2....they had also announced 3:1 bonus.... and now again announced 1:1 stock split...so the face value will be i.e. if tommorow exsplit happens price will be (for ex) 33.50

I will explain u price breakups...i had 1000 shares at 270 then it became 5,000 shares after 10 to 2 stock split... when price was 820..and price ex split was 162....then it became 20,000 shares with 3:1 bonus..when price was 212 and ex bonus price became 53.

So at 2 face value price is 67..so..at 10 face value price will be....67*4*5= 1340.

Now at 2 Rs face value...twelve months trailing EPS is 1.88 that translates into 36 PE...wich is at par with...SKS Microfinance issue price....

However SKS Micro is mid cap in MFI business and will grow at 70% CAGR.

However SE investment management has given guidance for 220+ crores Revenue from current 88 crores i.e. more than 250% growth. Hence u can expect EPS to be 1.88*2.5 times. at least Rs 4.5 per share....for fulll year march 2011.

That means at FY11 earnings cmp of 67 PE is just 15. Also it is a small cap..and hence can grow even faster from a low base.....of revenues!!

Now SKS fy11 EPS estimated at 46 i.e. at price of 985 i.e. 21 pe. Also...baring in mind that it is industry leader so it will get premium valuation...it is expected to be commanding 28-30 PE as per fy11 eps of 46...and hence 1200-1380 on listing.

So is sks commands....28-30 pe...SE should at least command 25 pe based on fy11 earnings.....

That means from current 15 fy11 pe it can go to 25 fy 11 pe...i.e. 25*4.5 i.e. Rs 110 price target post SKS listing...!!...or at least in next 3 months a price of 90 on conservative basis i.e....35% gain at least from current levels

So what i will suggest...is that divide half the amount you will be alloted in SKS in value for ex if u get 50 shares..then value of 25 shares of SKS...and invest...that much equivalent amount extra...in SE investments....That will give you insuarance against SKS investment....as you will at least protect 15% correction in SKS with SE.

I hope you got what i said....coz you asked a difficult question so a detailed answer

we expect listing at the rate of 1250-1275 and up side within an hour to 1650 to 1725 .... it will hold a while and come back and again rebounce with a target of 3000 within 6 months. if any one get this stock at the IPO price 985 dont book profits for 1-2 year instead add on dips for big gains.....wht to say for SKS.....A ROYAL HERO.

is there anybody who buy sks share in gry mkt

is there anybody who buy sks share in gry mkt

Now SE Investment is splited and its Face Value is only Rs. 2, so is it better to look at SKS Microfinance which is having FV as Rs. 10. Or SE Investment can see 250 again (CMP 67 and today it is locked at 10% UC).

It seems SE Investment IPO price was 250 and it hit 1350 in less than 6 months time. Can we expect the same with SKS Microfinance.. Listing around 1200-1300 and then price target 3500+ in less than 6 months.. (target 2000 on Listing day or within a week)...

GMP is 43-44..

Could any one tell me what is the Gray market price of SKS finance.

@ 746 IPO Expert

promoters and bankers priced issue at 985 seeing demand and supply..if u bought a flat in Andheri at Rs. 10000 per sqft and 3 years later you went to sell it at 15000 but found out market price as per demand supply is 20000...will u sell at 15000 ?

U shud see SE investment the company on Jan 2010 was 250 now on 3 august 2010 its price is more than 4 times 1350. Why bcoz it reported 200% growth from last year profit...!!..And in last quarter it increased 70% of profits of full year March 2010...then why woudnt you get a gain even at buying 1350...when it will show better performance in future..?

Why are u making comaprison with DLF. DLF's IPO size was 9000 crore+ this is 1500 crores...!! And this company is no DLF that will go to 300...after hitting high of 900.....coz there is no crisis and overburdened debt..and oversupply....problems in MFIs as in case of real estate

This is what indianmicrofinance.com says about SKS price target....

"SKS Microfinance Listing Price: Looking at the demand from Institutional investors, some analysts are predicting that SKS Microfinance could list in the minimum range of Rs 1200- Rs 1300, giving investors gains of 20-30 %. However if sentiments in the global markets improve the listing price could be even higher, an analyst with a broking firm predicted.

The IPO of the mexican microfinance institution Banco Compartamos was oversubscribed 13 times when it hit the primary markets in April 2007, and the share price had surged 22 percent in the first day of trading , even though the offering price was twelve times the book value of the company."

To 739 & 749 If applied two application in same name then one will be accept and one will be reject. so happy with one.

For Sl.No.739-Swati!!
If you have applied for 2-applications, with both in the same name(i.e) with the same PAN NOs., then your both applications would be rejected. Because all the applications would be arranged in the order of PAN NOs. and any repeating PAN NOs. would be summarily rejected. It happened for me for NHPC IPO last year. So the same thing may happen to you. Don't be greedy. If you want to apply for more than 1-application, then apply with different names(having different PAN NOS.). Thanks.

it could list well above 1000, hold.

Dear MILINDS and Suresh...

Since lot of people are asking about targets...i am publishing my earlier post of revenue estimates till 2014 once agin....will give u clear idea of long term...

Accordding to INTELLCAP that publishes microfinance report every year.....MFI loan disbursments will be 135000 from current 45000 crore currently by 2014. SKS total loan disbursment is 4500 crores i.e. 10% of total MFI sector. Even if growing forward because of the huge base they maintain a market share of even 5% from current 20& alone... that means by 2014 they will reach revenues of 6750 crores.

Assuming these figures and talking a conservative 70% CAGR growth for SKS instead of 100%. Following are earning and price estimates....

2009 2010 2011 2012 2013 2014

Total Loan Disbursements 265 495 990 1980 3375 6750
Net Profit 80 174 300 550 1000 1600
Earning Per Share 14 27 46 75 130 200
PE @ Rs 985 per share 70 36 20 13 7.5 4.9

Now assuming such high growth we can atleast assume that in 2010 it will command 45 to 50 PE due to scarcity premium and 30 PE thereafter till 2014...on conservative estimates shown above.

Hence following are price targets per share that SKS would command: Market always discounts one forward earnings expectations in current prices.......
Rs. P.E. Forward P.E. @ 985

FY 2010-2011 1380 50
FY 2011-2012 2250 30 20
FY 2012-2013 3900 30 13
FY 2013-2014 6000 30 7.5

CONGRATS TO PROMOTERS AND MERCHANT BANKERS FOR ABLE TO MOBILISE MONEY AND FOOL PUBLIC AND FILL THEIR POCKETS WITH MONEY.

STOCK WAS ALLOTED AT 300RS NOT LONG TIME BACK WITH WHOPPING MORE THAN 300% RETURNS. ALSO MERCHANT BANKERS WERE ABLE TO TAKE OUT MAXIMUM MONEY THEY COULD.

PLEASE REMEMBER ITS OVERSUBSCRIPTION IS NOT GOOD.INFACT IT HAS COLLECTED MONEY EVEN LESS THAN WHAT DLF COLLECTED WITH 1.5 TIMES SUBCRIPTION ONLY

DONT EE THIS STOCK HOLDING 800 RS ON LISTING

@ Suresh

Read my post no. 718...You will get the idea

CAN ANY ONE GUESS WEITHER SKS SHOULD BE SOLD ON LISTING OR HOLDING WILL BE BENEFICIAL?

small investing company

hi
swati
its' good to hear new people are coming in ipo.
but never forget to apply only through one mode i.e online or physical if u have multple or single demat account.
if u want to subscribe for more than 1 lacs better u open another demat a/c in the name of your mother/father/husband/sister/brother etc of course other than your name...........
have u applied for EIL?
how do u get advice on IPO?

Hi Swati,
Both the applications will be rejected as mentioned in IPO norms