SKS Microfinance Ltd IPO Message Board (Page 42)

Thoose who were quoting Mohammad Yunus of Bangladesh...against SKS....please read this....:

IPO is the Right Way to Reach Scale – Bandhan’s C.S. Ghosh on the SKS Microfinance’s IPO

As the SKS IPO has opened , Microfinance Insights brings to you reactions from various industry stakeholders, and their view of what it means for the future of microfinance.

Chandra Shekhar Ghosh, Founder and CEO of Bandhan, a Kolkata-based microfinance company, is unsure what the effects of the IPO move will be.

According to him, the sector will have to watch carefully how other MFIs respond over the next two to three months. But, on principle, he agrees with SKS’ move. “It’s a very good thing to get the money to reach the poor,” he says. “To meet capital needs and to reach more people, it must go the IPO route.” Ghosh doesn’t see another way to reach scale, without sizeable funding from the government toward the social sector.

Ghosh disagrees with Muhammad Yunus’ critique that to go public is to profit from the poor. The situation of Indian microfinance is unique, he says, and cannot be compared to Yunus’ experiences in Bangladesh.

“Sixty five percent of money has come from people themselves in the Grameen Bank. They are collecting deposits from their clients,” he explains. “That is enough to reach their small population. We cannot take a deposit from the people or clients. 90% of our funding relies on bank funding.”

Economic times article on sks....todat...interesting one

http://economictimes.indiatimes.com/Microfinance-The-banks-of-the-future---Swaminathan-S-Anklesaria-Aiyar/articleshow/6243065.cms

SKS VS. WHAT TO DO

I have keenly noted all of yours views with full respect.

Very humbly I would like to add :

Here is the list of those who are in favour of SKS :

GEORGE SOROS
NARAYAN MURTHI
BNP PARIBAS
RELIANCE FUND
ICICI PRU LIFE
BIRLA SUN LIFE
HDFC SECURIETIES
ANGLE BROKING
IIFL
HEM SECURITIES
NIRMAL BANG
PRABHUDAS LILADHAR
SP TULSIAN
MEHTA EQUTIES
WAY2WEALTH
BUSINESS LINE
CAPITAL MARKET
MONEY CONTROL

SO WHY NOT WE PEOPLE!!!!!!

I WANT TO BORROW 7000 FROM SKS TO APPLY FOR 7 SHARES OF THIS IPO. AFTER LISTING AT DOUBLE PRICE I WILL REFUND IT BACK TO SKS WITH INTREST.

GOOD BUSINESS IDEA , 100% GROWTH

APPLYING IN OUR IPO COULD BE INJURIOUS TO YOUR FINANCIAL HEALTH.

ARE YAARON

PEHLE HI IPO MAIN ITNA GHATA LAG CHOOKA HAI KI AAB HIMMAT NAHIN BACHI.

KANHIN YEH RS. 500 PAR LIST NA HO JAAYE.

985 MAIN SHARE.

BADA HI SASTA HAIH.

GHAR BAAR BECH KE ISS MAIN LAGA DO.

YEH AAP KO BARBAAD KAR DEGA

SKS = SUB KUCH SAAF

486. NIVESHAK

NOOOOOOO dear....SP Tulsian is a great analyst and has proved a big help for me for successful invetsmnet in IPO.

But we just have to understand his language....

When he says - "Go for IT" ----just go away from that....that simple...isn't it..

He is the only analyst, on whose recommendation u can earn profit in every IPO...EXACTLY JUST DO OPPOSITE WHAT HE SAYS

Dear all

suno sabki magar karo apne man ki
yahan par bahut se log aise hain jinhe koi kaam dhaam nahi h bus logo ko gumrah karte rahte hian

492 KK Natarajan

good, easy and useful for us. I also agree with u.

Many have discussed about apportioning of funds between SKS and Bajaj Corp. Let me present my views on that. People can spread the available money between these two issues evenly. SKS is a high risk, high return game. it is expected to be subscribed around 2 times in retail category and so one can get about 50 shares for a full application. If the premium is anywhere around 50 Rs, it will be 100 Rs return for retailers as there is 50 Rs discount. So for a full application one may get a gain of about 5000 Rs. This will increase with the increase in premium. If the listing is with a 50 Rs discount, then the retailers will not lose anything. On a worst case if it is going to list at a discount of 100 Rs, then the retailers will lose 2500 Rs for a full application, considering the discount.
Bajaj Corp is not going list at a discount in any way. It is a no risk, low return game. But it will be heavily subscribed as it is a small issue, may be around 10 times in the retail category. In that case the retail investors may get about 50 shares. If the premium is going to be around 50 Rs, then it will earn one a return of 2500 Rs. So adding up both SKS and Bajaj Corp, if one spreads his money evenly between these two, one may get anywhere between Rs. Nil to Rs. 7500 for one application each in these two. If there are going to be multiple applications one can multiply the gains accordingly.

SKS Microfinance will open its initial public offering (IPO) of 16,791,579 equity shares for subscription on July 28. Jaypee Capital Services has recommended avoiding this issue, in their research report dated July 27, 2010.

The price band for the issue is at Rs 850-985 per share. Book will be remained open till July 30 for QIBs and August 2 for retail & non-institutional investors. Bids can be made for a minimum of 7 equity shares and in multiples of 7 equity shares thereafter.

The report says, "SKS is the largest MFI in India in terms of total value of loans outstanding, number of borrowers and number of branches. The total loans outstanding increased at a CAGR of 162.9% from Rs. 780.50 million as of March 31, 2006 to Rs. 14,175.23 million as of March 31, 2009. The IPO comprises of a fresh issue and offer for sale for augmenting the capital base to meet the future capital requirements. SKS has expertise in Microfinance and have been focused on lending to poor women in India. It has a superior asset quality. As of March 31, 2010 its net non performing assets, or NPAs, was Rs 48.03 million or 0.15% of loans outstanding. It has a scalable operating model and looks to increase its customer base and ticket size in future."

"At the lower price band, the stock is priced at 35x trailing FY10 EPS and 6.4x post issue book value. This, we believe is expensive, compared to Global MFIs which are trading in the range of 3.5-4.5x their book value. Though the company has a very robust business model, strong margin profile and return ratios and low NPA’s, we believe the issue is overpriced and suggest investing after the stock lists. We recommend avoid on the stock," according to report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Several analysts spoke to the Mint newspaper about SKS Microfinance’s IPO Valuation and this is what they had to say -

“At Rs850 a share, the implied valuation for the firm is 3.8 times post-issue book value (net worth) and 35 times the earnings of fiscal 2010, which appears quite expensive.”

-Pankaj Agarwal, analyst at the UK-based investment advisory firm Execution Noble.

“The pricing seems to be on the higher side,”

-Tejas Doshi, vice-president,Sushil Financial Services Ltd.

“Doubtlessly, it is an expensive issue, given the risks and uncertainty associated with the microfinance industry”.

- Apurva Shah, head of research at Prabhudas Lilladher Pvt Ltd.

EIL V/S. SKS V/S. BAJAJ V/S. PRAKASH
25% - 25% - 25% - 25%

remember never put all the eggs in one basket

Here are the links.that i had posted before people to study about the sector and SKS not to see who reccomended and who is mearchant banker..?...5vother brokers have also reccomended.......

Superstitions dont lead to investment decisions.....you have to look at company and not stupid things like who is mearchant banker and who reccomended?



for serious boarders....critics and supporters alike plz read this moneycontrol synopsis on SKS....

http://www.moneycontrol.com/news/ipo-tip/whyexperts-broking-firms-bullishsks-microfinance_474224.html

and forward looking statements in angel research in this link:----

http://www.moneycontrol.com/news/ipo-issues-open/subscribe-to-sks-microfinance-ipo-angel-broking_473963.html

SKS = SUB KUCH SAAF

Why this guy SP Tulsian does not stop making IPO analysis despite his failure in judging IPO for the last at least 20 IPOs on continuous basis.

I have never seen such a bad ipo analyst ever.

jo company garibon ko 30-40% byaj par loan deti hai woh hamain sasta share kya degi, agar isaka bas chalta to yeh share 935 nahin 9035 main de deti.

eil bahut accha ipo tha. hamanein to saara paisa udhar hi laga diya. sreedhar theek kahata hai. eil jyada acchi compani hai.

@ 470 gem IPO finder

"YES ITS TRUE SKS = 40% AND BCORP = 60% ALLOCATION OF MY FUNDS.

U KNOW WHAT HAPPENS THAT IN STOCK MARKET SOME TIME U HAVE TO BE WITH CROWD NOT CONTRARION, I CANT BE THE SINGLE BULL IN SKS IF SO THEN U CAN FORSEE MY BAD POSITION."

No in stock market you should always be contrarion and not with crowd....so the crowd expects it to be overvalued...unethical.....etc......some people say kotak...some say other reasons...

jest look at long term fundamentals of co and sector ..GEM ....That what makes successful investment decisions.....

I think you weightage shouls be opposite...!!...Just my view.....you can do whatever u wish

k bafna 481

earlier i was planning 3 full applications for SKS and 1 for for BAJAj but now i have decided to put 1 in sks and rest in bajaj or prakash.

is is treu that SP TUSIAN has recommended this issue. from where did u check. please give me link i also want to read his report