Standard Chartered PLC IDRS Message Board (Page 10)

@gem ipo finder ,

Hi Gem ..what's your final call on Standard Chartered IDR ..should we skip this issue or apply at lower end of price band..The subscription figures have been very poor till now..
waiting for ur reply..other senior members like Shreedhar and Ravi,Bangalore are also requested for their opinions on this..please reply

139. Sreedhar

If you do not see borkerage house report then, how will you decide? Do you have expertise & information to analyse every company from different sectors? Practically, it is not possible to analyse ourselves. Only way is reading 3 - 4 brokerage house reports & taking our own decision.

If analysts write too pessimistically, promoters don't share with all information with them. Moreover, promoters offer gifts / grafts while rising money from market. We need to read between the lines of brokerage house reports to come to the conclusion.

If you read 3 - 4 brokerage house reports, it is clear that NHPC & JP Infra are over-valued. Even Shree Ganesh at 250 is over-valued.

80% of times, brokerage house reports are correct. But the caveat is you have to read minimum 3 - 4 brokerage house reports and take your own decision.

Similary, I concluded that Standard Chartered Bank fair value is Rs.127. Considering disadvantages of IDRs at domestic market, I believe, 35% discount to fair value (i.e. below 95) is good for long-term investment. Even investors have the choice to consider post-listing, if fear stops you to apply for IPO.

I read minimum 3 - 4 brokearage house reports before coming to conclusion. How will you do? Just by reading prospectus, can you come to know all facts about company? Can you understand all businesses to analyse?

Analysis is professional job & only qualified persons should do that? As investors, before putting our money, we can take final decision based on their reports.

IN mumbai limited sauda...application rate ..1500..

Per application + very high commition dekhkar brokers kah rahay hi apply karo, kiyki sub janthay hi ke agar idr fail na hua tho firm allotmet hoga, apnay tulsiyan bhai in batho kay ustad hi isliya voh sabsay agay hi.

GOD CAN ONLY SAVE THIS ISSUE THEY HAVE NOT MADE THEIR HOME WORK PROPERLY TO BRING 2700 CORES IN ONE DAY IS NEXT TO IMPOSSIBLE STILL THERE IS NO CONFIDENCE FROM INVESTORS DUE TO FALL IN EURO JUST BY CHINA SAYING WE WILL SUPPORT THE EURO THE MARKETS WENT UP TODAY BUT WHETHER THE RISE IN EURO IS SUSTAINABLE I AM FOR THE PRICE TO BE BROUGHT DOWN TO RS 110 SO THAT RETAIL INVESTORS WILL GAIN LET SEE WHAT HAPPENS

Dear Friends,
Some information about the underlying stock:
Broker consensus for StanChart at LSE.http://uk.reuters.com/business/quotes/analyst?symbol=STAN.L
Financials and comparison to industry at LSE. http://uk.reuters.com/business/quotes/analyst?symbol=STAN.L
It closed y'day at 1,682.00GBp or 110 INR for IDR.
The difference between the price in LSE and IDR price is not the margin of safety, it is the arbitrage opportunity. Margin of safety is the difference in the quoted price and the analyst's calculations of what the business is worth.
In my opinion there is a small margin of safety in this issue. For Indian investors this gives them a partial diversification from Indian market risk (from India specific events like coalition governments falling, sanctions following nuclear weapon testing, terrorism and tension with neighbours like Pakistan) Partial because StanChar’s Indian operations contribute 12% of the operating income.

pl lower the price to rs 110

i like the view expressed by brokers loot

Hats of to you Anil!!
For your "indepth" analysis of SGJHL issue.
pl. note that i had not subscribed to this IPO.
but i am regular subsciber to IPO since 1994.
I am really "acedmically"(no pun intended)interested in knowing what has really happened in this issue(Behind the screen)
I will appreciate all/any boarder, particularly Mr Anil
to let us know what is your understanding from the whole" episode"
milinds

The QIB subscripyion is decreased on day 3 compared to day 2 that clearly means that they are withdrawing their application. however this is a very low figue but still a matter of concern before thinking to invest in this ADR issue. Day 2- 0.1501 times Day 3- 0.1473 times

I am really thankful to Ravi Bangalore & Ipo Expert since both of them are having difeerent opinion, i repeat & RESPECT differnt opinion of this issue, since i am "eduacated" by the same.
Once again thank you RAVI BANGALOE & IPO EXPERT.
milinds

Ravi,
Who is going to follow brokerage reports?How can anyone buy India bulls power which has such a low capacity & is offered at high premium compared to the giant power Companies & Hathway ,the perennial loss maker.Brokerage houses also recommended JP Infra,NHPC etc.They go wrong 80 percent of time as the recent listings shown.

Braking news, Power grid AGM dated 25/05/10 decided that no need of FPO therefore no fpo will come.

Ravi you can compare this issue with Reliance Power. It list at least 25% below the issue price.

I dont agree Ravi. You will see on listing.

This stock is recommended by brokerage because hey must be getting paid by the company or its merchant bankers and its quite possible this is happening with other issues.

This could never get checked as its almost impossible to keep any eye on everyone.

i am sure looking at its risk and not so cheap valuation and quite large size this will definitely list below its issue price.

infact i think it might just get subscribes 1 time with some help from qib but retail would not get subscribed more than .50 times . so that means all share allotted and risk is very very high. infact who will stabilise such large issue after listing.

skip this issue and instead go for better stocks available in secondary market

125. Anil

Whether it is better than Indian Banks or not is the issue now. Whether valuations attractive or not? As it is not superior to Indian Banks, it is offered at lower valuation to domestic private banks, according to various brokerage reports.

At certain price, even bad companies are attractive (after factoring-in all bad news in their price). Similarly, at certain price, even best companies are unattractive. Everything is reflected in their prices.

Now the question is if you believe that it is offered at attractive valuation, you can apply. Otherwise you can skip.

My view will go wrong if brokerage house reports are wrong. It happened in Indiabulls Power, Hathway.

Caution is almost every brokerage house giving SUBSCRIBE rating, even if some believe it is fairly priced. But as per my information, at Rs.100 (5% discount to retailers), it is attractive for long-term as it has 35% upside potential.

134. dada

Please tell us ur source of information.......or it is just ur expected price.....

Due to failer of idr,new price band is 60 to 75.

hi,

it should notice that the subscription of QIB is reduced as compared to yesterday....that means they are withdrawing money... I think we should AVOID this IDR...there is something fishy in this issue....

QIB have started withdrawing from this IDR.
ITS IA 2500 crore issue so surely to go down on listing .
no market condition can help this stock open even 10 paisa higher.

Standard charterd bank do not have big corporate or retail customers like hdfc and icici bank.
when hdfc bank is available at lower P/E i must applaud the courage of its merchant bankers to come at such price.

from now on teach every IPO a lesson by not subscribing unless it leaves 20% on table infact sjvnl left 10% still quoting below issue price quite surprising.

it will be good to see this idr not getting subscribed 1 time tommorrow. it might go emaar mgf way which priced very higher to ots valuation