SKS Microfinance Ltd IPO Message Board (Page 57)

In what could be a major overhaul of the way public offers are conducted, market regulator Sebi is planning a possible demarcation of
days to be given to retail and institutional investors for submitting their bids. As part of efforts to attract more retail investors to the stock market, Sebi is considering a proposal wherein the institutional investors would be first asked to submit their bids, possibly in the first two days, and then the remaining two days would be open only for retail investors, provided the IPO is open for four days.

The move is being considered because retail investors have been traditionally following the cues from the demand generated among the large institutional investors and put in their bids on the last day, but in the recent IPOs the institutional investors have also been seen waiting till the last moment.

This has led to a large chunk of retail investors missing on the opportunity to invest in the IPOs where institutional investors have come in during the last hours, a senior official at a leading merchant bank said.
The banker said such problems have been aggravated in the recent months as investors have not been able to reap any big returns and have in fact lost money in some IPOs, thus making them hesitant to put in their bids in the initial days.

Sebi believes, the banker noted, that the response has been even more worrisome from retail investors and while most of the recent IPOs have managed to get handsome bids from institutional investors, that is not the case for small retail investors.

The proposal of earmarking separate days — first few for institutional and last few for the retail investors — is currently being discussed by the Sebi’s Primary Market Advisory Committee as part of its efforts to revive retail investors’ interest in the public offers.

Among other steps, the committee is also considering making the IPOs a simpler investment process. Besides regulation and development of the primary market, this committee also advises Sebi on changes required to make the systems and procedures simpler and transparent.

both price band and discount has been declared on money control

It is another nhpc, shree ganesh type ipo fair value rs. 73 only.

gmp has come down to 48-50 after price band ..

dear sreedhar,gem ipo and ravi ,kdly now discuss about price band of sks micro finance..it seems risky at this price band...to lure retail investor has been offer rs.50/- discount but not before declaring high price band..

price band 850-985

this is disaster !!!!!!
one of the most danagerous ipo ever!!!!!!
promoters are so greeeeeeeeedyyyyyyy!!!!!

both the ipo now looks risky, i will not go by the subscription of qib only.

SKS Issue Price

Rs. 850 to Rs. 985

Retail Discount : Rs. 50 per share

what is the market lot sks ltd.

prise band announced 850=985...retail invesor will get flat discount of rs. 50/-..PER SHARE ON DISCOVERED PRICE

Price Band should be - 850-920, Market Lot-7, Discount to retail bidders- 5%.

Engineers India price band fixed at Rs 270-290

The Empowered Group of Ministers on Sunday set as Rs 270-290 as the price band for the follow-on public offer of State-run Engineers India Ltd.

Retail investors will get a 5 per cent discount on the issue price — a price discovered through the book building process, official sources said.

The Government expects to mop up Rs 950 crore from the 10 per cent stake sale.

The share price of EIL had closed on Friday in the NSE at Rs 338.10.

850- 985 .... Crooks !!!
A pure avoid I think based on promoter greed.

sks ipo apply or no? What is premium? what is expect listing gain?

Dear all,
I am a regular IPO investor. I have seen investors making same mistake again and again and again. They always run for extra ordinary and unreasonable profit and end with extraordinary and unreasonable loss. Many examples are there- REliance power, FCH, Indiabulls power etc.

However when there is an opportunity like REC, OIL India, they even dont subscribe one time.

I agree that it is difficult to differentiate between good and bad IPO/FPO. But still, there are many ways we can get good returns by ipo/ fpo :-

1. Never apply in an IPO/fpo by taking a hint from grey market. we all now that rpower, fch and all the recent IPOs had grey market rates (whether high or low) but what happened after listing is also known to us.

2. Always check EPS and PE before applying. here in the case of SKS, the company has a net profit of only 80 crores (last year figure) and its going to dilute its 21% equity for rs. 1200 crores resulting in a market cap of around rs. 6000. If we expect this to list at a premium of 10% than it will have a market cap of rs. 6500 crores.

Investors should think themselves that whether a growing company like SKS deserves this valuation or not. They should not give weightage to grey market as the main motto of the grey market is to induce investors to apply for the ipo. (only 10% of the investors sell in grey market all other just get trapped by seeing the grey market prices.)

3. Don't leave an ipo/fpo just because it is getting less subscribed or does not have grey market rates.


4. If you have doubt over quality/ risk/ return of an ipo/ fpo than leave it.

5. If after apply for an ipo/fpo investor feels uncomfortable, then he should write to registrar for non allotmnent. yes, this is possible before finalisation of allotment.


we might miss some good ipos but should not apply for a single bad ipo. this will protect our capital.

My OPINION on SKS- Those who are grey market sellers, should definitely apply and sell but for own listing gains, its a definite avoid. HIGH price does not justify the quality and growth potential of company. Remeber FCH, investors are still waiting for issue price.

This is my personal opinion, i may be wrong or right, but atleast i will not loose money.

Regards

1 Idiot

i have got the massage obout prise band is 850 to 985 but no any bussinss news chenal or website has reflected about the priseband.so please be carefull for it.

SKS PRICE BAND 850-985 RETAIL 5% DESCOUNT

GEM,
Preservation of money is also my number 1 priority but getting
maximum return is my no 2 priority. That's why I have invested in Cox,HMVL etc.Even in NMDC I expected what would happen post FPO hence got more than 10K per application,sometimes we need to know when to bail out,that is what I did in SJVNL when management said on IPO there will be no new capacity that will be added for couple of years.If that is known there is no way we are going to get loss even if it is subscribed once & I have never experienced any loss in 1 time subscription issues but got windfall profits . 8 Technofab applications were equal to my 1 HMVL application.Any how I think you will definitely apply for EIL FPO since it will be subscribed more than 2 times at least in retail.There is no doubt EIL will give double digit return per application & beat SKS hands down in return per application provided EIL is not subscribed more than SKS.Even at 338 it is a good buy & post FPO will it will be above 335 once selling pressure subsides.I hold only few companies long term & will get out of EIL only after 400 is reached.Mark my words.This is not an ordinary PSU company,it is unique in its line of business & got order book 3 times its revenue,I think only few engineering companies if any boast of such an order book.There is a great earning visibility for EIL

At any point of time retailers have an amount of about 4000 cr. SKS may give retail subs of 6-8 times. ie Rs 360 cores *8 = about 1500 cr. listing gain (including discount)= 125-150. so max benefit = max 2 lots alottment= 18*125 = 2250/-

EIL may get subscribed 0.8 to 1.0 times in retail. Full alttment asured. Solid fundamentals. 5 % retail discount.
Assuming that share trades at issue price on listing day, after brokerage, a gain about 95000*.04 = 3800 ensured.(minmimum)
So I will go with Sreedhar Bhai.

SKS Microfinance IPO: Invest

Investors may consider this IPO at Rs 724 per share or below. At this price the company may realise Rs 1,260 crore from this IPO.

At a price-book value of 3.5 times post-offer, the stock would trade at Rs 724. The PE ratio at this price would be 26 times. Over the last 15 months, the company has raised funds from private equity investors at Rs 300/share


Source:
http://www.thehindubusinessline.com/iw/2010/07/25/stories/2010072550531100.htm

Dear Natarajan,
As you can be aware from my earlier posts,I am not applying in SKS as a matter of principle.Anyhow I have witnessed SKS growth from its infancy & now not at all interested to buy at 650 but I am very happy for my native village women who are very excited by this IPO(most of them are initial beneficiaries of SKS).