So based on subscription figures by Yo YO Ipo, should we apply for minimum lot in retail for confirmed allotment? Will they lottery system to allot as issue is oversubscribed? I got 0 allotment in 2 ipos last year due to lottery system - just dial and care
Minimum Lot is compulsory but if no of applicants are more than (reserved shares/minimum lot) than lottery system will be applied. Now in this case if retail applicants are more than 50750 then lottery system will be applicable so in that case you get will 100 or nothing, more the number of shares applied more will be the probabilty of getting shares in lottery system.
Total Issue Size 1,23,25,000 Total Bids Received 4,28,97,900 Total Bids Received at Cut-off Price 1,67,42,100 No. of times issue is subscribed 3.48 Graph Logic
Anand Rathi: The company is into cash cow business which actually means huge capex in starting of the project and minimal maintenance capex and strong cash flow thereafter. We believe a successful amusement park business can be good investment option. Company track record and ROIC (post Tax) above 20 per cent made it efficient player in that category. At the IPO price band of Rs 115-125, the stock is available at a multiple of 19-21x FY13E PE (post dilution). Globally companies into same segments are quoting at 27x (average TTM PE). We recommend investors to subscribe for the IPO.
We would recommend to apply in the IPO in the retail category. Small issue size could see significant oversubscription. Post issue performance will be subject to overall market conditions. An ideal issue for LT investors as we expect stock to double over next 4 years.
On the second day at 5 pm overall subscription is 0.98. In my openion it may prove to be a Theamatic Issue commanding premium valuation being the first in its business class. Motilal Oswal,Iiifl,Anand Rathi,Nirmal Bang are recommanding to subscribe the issue.
Apply if QIB portion subscribed by atleast 2-3 times. Then only it provides safe exit opportunity... since circuit limit for this share is 5% on listing day no much gain will be left for us...