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Crimsonarcher
Senior Member
Joined: 05/Oct/2006
Location: United States
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Posts: 355
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Topic: Indiabulls Power IPO Posted: 18/Oct/2009 at 10:58am |
Indiabulls Power is going for an IPO, where they are issuing 339,800,000 shares to the public with a green shoe option of 50,900,000 more shares at a price range of 40-50.
So in effect they are raising 1360-1758Cr rupees from the public for a company that has not even started any production. Already they have received bids for 22 times this share qty or , 29900-38676Cr. I haven't had a chance to look at the prospectus, but RJ,Ramesh Damani and SamirArora have already called the Power Sector as the new internet bubble with valuations hitting the sky with no operational performance. Has anybody invested in the IPO, and what do you hope to gain out of this? Considering the latent demand of 22 times the actual qty of shares available, there might be some listing gains, but that justify investing?
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neerajlulla
Senior Member
Joined: 10/Jun/2008
Location: India
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Posts: 160
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Posted: 19/Oct/2009 at 9:40pm |
costly i have not invested!!!!!!!!!
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buy and forget for long term
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Crimsonarcher
Senior Member
Joined: 05/Oct/2006
Location: United States
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Posts: 355
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Posted: 20/Oct/2009 at 5:10pm |
Costly??? How do you know? Then again why are individual investors rushing in to hand over money for this IPO??
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neerajlulla
Senior Member
Joined: 10/Jun/2008
Location: India
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Posts: 160
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Posted: 20/Oct/2009 at 11:45pm |
they have no buisness thats why it is costly as suggested by many view of master
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buy and forget for long term
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Crimsonarcher
Senior Member
Joined: 05/Oct/2006
Location: United States
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Posts: 355
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Posted: 21/Oct/2009 at 12:00pm |
Exactly... so what are the people buying at 45 rs a share? and what about the anchor investors? what are they getting? Utilities have life spans in decades, and even then give marginal returns to shareholders, so what would people get by buying into adani power, reliance power and now indiabulls power? Cash goes out upfront while people wait for returns their whole life!.
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Crimsonarcher
Senior Member
Joined: 05/Oct/2006
Location: United States
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Posts: 355
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Posted: 21/Oct/2009 at 2:50pm |
Originally posted by neerajlulla
they have no buisness thats why it is costly as suggested by many view of master |
I saw their prospectus and again its blank on the 'Basis for Price' section. In fact based on historic p/e, its quoting at 90+ P/E on an issue price of 45rs a share. For a utility company it should not be more than 10 so you do the math. the share should be priced at 4-5rs. And once again the promotors have priced the share at the maximum offer price of Rs 45 a share.
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j2eeprofessiona
Senior Member
Joined: 13/Sep/2008
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Posts: 968
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Posted: 21/Oct/2009 at 10:11pm |
there was a report today on TV claiming that there's lot of loopholes in their power project. The project land has not received a NOC, forget about even a single brick laid on that land....furthermore, the project was changed from critical (or was it super critical) to sub-critical project and there's some legal implications which are still amidst process...
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subu76
Senior Member
Joined: 25/Feb/2008
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Posts: 5709
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Posted: 21/Oct/2009 at 10:11pm |
This IPO is a near perfect demonstration of money attracting more money.
How i wish we rozi roti folks could monetize all our future earnings in the stock market.
Edited by subu76 - 21/Oct/2009 at 10:15pm
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