samT, do you know how TOI and Bhaskar invests in all and sundry companies? It is called a Private Treaty.
The newspapers have a lot of advertising space to sell, and effectively it costs them very little, though the value to the advertiser is very high. TOI and Bhaskar allow such companies to put their ads for free. In return, they ask for the money in kind, i.e. in terms of equity stake. So TOI has literally 1-3% stake in thousands of small and unlisted companies, which it has effectively got for free. Only a few of them become something, such as Pantaloon and then TOI makes big money on those holdings.
Plus, since its holdings are for more than 3 years since it gets the stake (typical time between the issuance of equity to TOI and post-listing sale by TOI), the capital gains is tax-free.
So please don't read anything into investments by TOI and Bhaskar into it. In fact, if that is the case, you should be extremely vary of anything positive said about this in TOI or Economics Times. The pathetic trend these days is to have paid news, wherein well-known newspapers give positive coverage to companies in which they have vested interest. While the international norm is to acknowledge such connections (New York Times, Forbes, etc mention if there is any tenuous connection of their parent company with the subject), the practice is still not prevalent in India, for obvious reasons.
By the way, what does VMS do exactly? From their prospectus, looks like they like to do anything that gives them money. Timbor is equally termite infested. You might get a good listing pop. But then, Mahalaxmi race course also offers decent odds and so does Nagaland Bumper Laxmi Lottery. :-)
Every small IPO may not turn out to be a vaswani !!! use your brains do your own research and do your own analysis. If TOI and Bhaskar has invested in the company they wouldnt have done without due deligence. It is difficult to judge by books alone. Check out the industry and scope too.
Dear skdash, Vaswani type play will not happen for sure.Whatever the bids will be real bids.People can take a call depending on their risk appetite.
21. SkDash| Link| Bookmark|
May 31, 2011 11:14:08 AM
Top Contributor (1000+ Posts, 200+ Likes)
For VMS and Timbor Phul aur Kante:
Phul: -
1. Small issue-Operator will be present and chance of listing gain 2. Past record for samll issues is +7 out of 10
Kante:-
1. Poor fundamental 2. Highly priced 3. Chance of manipulation (like Vaswani) is high and the picture may change overnight
Result of permutation and combination- One can apply only to get phul (LISTING GAIN) though it is known to him/her that Kante is there. High risk-High Return. May be a dark horse or horse in dark
My position- will decide in the last moment on 2.7.11 and more chance is take test drive to get phul
Please DO NOT apply for such grade 1 IPOs, this could be another one like Vaswani. No matters how the listing will be but for sure the Retail investor will have to pay for this.
SK - I think you need to produce 3 years balance sheet for your company if you decide to float an IPO. You can collaborate with someone who already has a company with accounts maintained for the last 3 years least and share the spoils amongst the 2 of you.
9. SkDash| Link| Bookmark|
May 25, 2011 5:08:25 PM
Top Contributor (1000+ Posts, 200+ Likes)
when everybody is interested in this 20-30 cr IPO, why cant we join hand to form a pub ltd co and launch an IPO with 25 cr ?
we will appoint CARE/ CRISIL as rating agency (since a comp requirement) and let them say 'Poor funda'. (note-there is no grade below 1, so they have to give 1, not 0 or any minus fig)
Ashika Cap will be our Lead Manager.
Purpose of the issue:
1. Prel exp 20k 2. Credit rating exp 50k 3. Issue Exp including Ashika Fee 2 cr 4. Party among Chittorgarh member 1 cr 5. Capex for office building: 1 cr 6. Balance to keep in hand to explore opportunity to do business, if any 25 cr
Operators Might play a reverse game and take the price to south........
7. Rkg| Link| Bookmark|
May 25, 2011 10:15:20 AM
Top Contributor (500+ Posts, 200+ Likes)
Timbor is likely to offer shares at a cheap price of around 60/-.Apply to maximum strength,so that after full allotment,no money will be left for worry/tension related to applications in future IPO's.