expensive stock and they must have priced the ipo at higher price due to maket condition
it will hit lower circuit on listing. there is no demand among HNI Better to buy fom secondary markets which have stocks falling 30% and are available at cheaper price .
teach greedy promoters a lesson. investor 3i and others exiting with more than 300% returns
both MEP infrastructure and UFO Movies will hit lower circuit on listing day
although the issue appears pricy, being the first IPO in this segment, it is to repeat the history of Just Dial, Wonderla, Snowman Logi. Issue is worth grabbing for listing gains as well as handsome rewards for long term.
If ipo has high price than it doesnt mean that its bad so all who dont want to apply stay away becawithout considering companys brand value u cant simply say that we should avoid. And 1 more thing every securities agency has given positive response to this ipo on moneycontrol than how can u advise to stay away????
It''s important that you pay a right price and for IPO have good margin of safety. What brand value?? Did you read RHP, GID & Addendum published? They have infringed the patents of Real Image and if the case goes against them the company will go belly up. Understand it.
As you want to apply, nobody will stop. If no one applies how come we will see listing price like we saw for Monte Carlo, Adlabs, Ortel etc.
In January 2007, UFO Moviez raised $22.37 million (Rs 100 crore) from 3i Group against a 32.5 per cent stake. (that means total company valuation of Rs.307.6 crore)
Later in April 2011, Providence Equity Partners, via its investment arm P5 Asia Investment Holdings (Mauritius), invested $58 million (Rs 260 crore) for a 35.7 per cent stake. (that means total company valuation of merely Rs.728 crore)
Further, P5 Asia Investment bought about 1.5 million preference shares onlyn at a price of Rs 100 each and 3.5 million equity shares from Apollo International Ltd, 3i Group and the promoters. 3i Group sold 6 per cent stake for Rs 45 crore.
A company whose valuation was just 728 cr in 2011 want to sell its share @ 600 ( Rs.600 crore of IPO with stake sale of 37%) which turns out to be company valuation of roughly Rs. 1621 crore. which menas 728 to 1621 crore in Just 4 yers !!! so is this justified ? pls let me know
Not sure I understand your logic. You are questioning whether a company can roughly double its mcap in 4 years? My answer is definitely it can. This is equity market not Fixed deposit. Good and growing companies can even do that in 2 years. Surely many other things need to be checked before investing in this. But not investing purely becait has doubled in 4 years is insane.
Yes, there are companies that not only doubled their market cap but went 10 times due to performance and valuation rerating. But here it''s a strange case that in 2014 June they were ready to sell whole company for 800 crore & now asking 1700 crore approx due improved market sentiment but their own business is slowing down and promoters aren''t serious to grow the company.
As rightly said by Star IPO, market runs on sentiment. You need to understand that from June''14 to today, market as whole has grown. Check some of their competitor prices. Eros was trading at 200 in June, now 425. So such things do happen. I am not saying that blindly apply in this ipo. But at the same time, saying that I will not apply in this IPO becait was much cheaper 4 years back or 1 year back is also not correct.