SKS Microfinance Ltd IPO Message Board (Page 37)

0.35 in Retail @ 11:00

Hi Guys

GMP in jaipur is

46 RS no buyer(only seller)
yesterday the premium was 68
Application rate 2000

avoid SKS better apply in Bajaj

It seems better to avoid this issue. It is a major risk.
Better to be idle than loosing money

GREY MARKET SELLER 56 NO BUYER
IPO FORM SELLER 2200 NO BUYER

@SETU JAIN:
what are your targets for SE investments?
i bought today at 62/-.

582.Humble IPO Investor

Even if you have made a mistake while writing the PAN number, it is corrected while punching your details while submitting the form because as per your depository (D Mat) details the applicants description gets punched, so hopefully your application may not be rejected.

AVOID SKS Microfinance: Extremely Expensive and Hyped out of proportion


SKS Microfinance Limited is tapping the capital markets and the issue which has opened on Wednesday the 28th of July closes on Monday for other applicants while it has closed for QIB’s on Friday. The company had made an anchor allocation as well and a total of 30,22,484 shares were allotted to 36 entities at the top end of the price band of Rs 850 to 985.

This issue has been hyped and has been embroiled in controversies and could change the way people look at microfinance companies going forward. At the end of bidding for QIB’s a total of 14,37,20,703 shares were bid for making the remaining QIB portion oversubscribed by 20.38 times. If however one was to add to the original QIB figure the anchor investor received and divided the bid quantity the oversubscription figure would be 14.56 times. The issue was so highly hyped that unconfirmed figures from merchant bankers put the QIB portion at a staggering 80-100 times. Thankfully nothing of that sort happened and the figure was a respectable and digestible figure.

in retail it will not cross more than 2 times.2.58*950/1650=1.48 as per eil calculastion on last day subsceiption

TAKEN from ak57.in

Valuations
The company has fixed a price band of Rs 850 to Rs 985. The company has declared results for March 2010 and based on those numbers on a fully diluted basis the EPS for the year would be Rs 24.29.At the lower price band of Rs 850 the price earnings multiple would be 34.99 times, while at the upper price band the same would be 40.55 times. The valuations look steep and I believe a lot has to be paid for the hype and not the business.

Conclusion
The business is good, but the margins seem on the higher side and may not be sustainable. There are lot of issues and controversies concerning the company, the promoters and the various trusts who own the company. The fact that a large number of independent directors have in the last year or so resigned from the board and trusteeship leave a lot to be explained. Shares were allotted to various institutional investors about six months ago which leaves one to wonder what has dramatically changed in six months that the asking price or price band has trebled in such a short time.

Looking at all of these it appears that the investment may not be all that great as controversies far outnumber the positives. The asking price being so high may not leave enough on the table for a safe exit for investors. It may make sense to let the issue list and then take a call once controversies are addressed. Probably post listing markets may offer better opportunities.

From what i read

1) Micro finance should empower the borowers by gving them shares this compant does not

2) They are into cashing of the investements made till now

3) They charge very high rate of interest

makes my stomach churn with so low ethics reminds me of old time hindi movies where money lenders used to squeeeze every ounce of blood from poor people. Hail Grammen and Modmd Yunus who do it other way.

you will see some problem at bse sight, sks HNI can subscribe only 8times

PLACEMENT TO INVESTORS@ 300
ALLOTMENTTO REATIL @ 935

its unfair. will list at 300 discount.

SKS = SUB KUCH SAAF

sidhu

apply at cut - off and pay @ 985, discount is not adjustable at application but at allotment.

CAN ANY ONE TELL WHAT PRICE SHUD I FILL FOR ALLOTMENT EITHER 985 OR 985 LESS 50 Rs. DISCOUNT 935

dear sks, it will sub. more than ..5.. times in retail ...mark my word

SKS may subscribe in retail more than 7 times

MELODY HAI CHOCOLATY.. MELODY HAI CHOCOLATY..
MELODY KHAO .. KHUD JAAN JAO..

SKS HAI OVERPRICED.. SKS HAI OVERPRICED..
SKS LAGAO.. KHUD JAAN JAO..

JO APPLY KAREGA USKO TAGADA LOSS LAGEGA
10 KA SHARE 985, KYA LOOT MACHI HAI

apply sks with blind eyes, you will be huge amount gainer avoid bajaj,sks can subscribe between 2.50to3times