Indiabulls Power's IPO was subscribed 5 times, as the issue opened on 12th Oct 2009 (today). The issue details are as follows:
No of Equity Shares 39.07 crore
Value of each share Rs.10
Price offered (band) Rs.40 to Rs.45
Minimum lot 150 shares
Further lot in multiples of 150 shares
Issue Closes on 15-Oct-09
With the recent power issues (Adani & NHPC) quoting below or near the issue price, I do not think that the retail investors would be interested in this issue.
My concerns:
- The price of Rs.40 (the lower band) is itself high
- Adani & NHPC available at good valuations in the secondary market
- The promoters have no experience in mega Power projects
- No operating history, as the company is just 2 years old
- Long gestation period for the 5 projects, though some are in the advance stages
If at all there are any positive in this IPO, they are:
- Listing gains (if the market maintains it momentum) of about 3%
- The promoters have access to capital market (Indiabulls Securities) and can sustain the price above the issue price.
Here are 2 questions:
- What would be the issue price?
- At what price the stock would be listed?
I have created a poll on the right hand top of this blog page. You can vote and let us see where we are in terms of understanding the market?
Cheers,
Gopal
2 comments:
Gopal, who is the market - India Bulls and brokers of its ilk. Wait and see at what price it gets listed. If it can pull it off (listing) before Diwali, some of them are making a big kill and leave a lot or retail investors licking their wounds for months to come!
Yes Sir, that is the only hope for the investors for a listing gain, if at all it can get a decent premium on listing and exit. I think for long term, we can get it in the open market at a reasonable lower rate.
Cheers, Gpoal
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