Indiabulls Power IPO
Printed From: The Equity Desk
Category: Market Strategies
Forum Name: Management
Forum Discription: A bad management in a good business is worse then a good management in a bad business. Discuss the techniques to segregate the good management from the bad ones.
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=2463
Printed Date: 28/Apr/2024 at 8:40am
Topic: Indiabulls Power IPO
Posted By: Crimsonarcher
Subject: Indiabulls Power IPO
Date Posted: 18/Oct/2009 at 10:58am
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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? |
Replies:
Posted By: neerajlulla
Date Posted: 19/Oct/2009 at 9:40pm
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costly i have not invested!!!!!!!!! ------------- buy and forget for long term |
Posted By: Crimsonarcher
Date 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?? |
Posted By: neerajlulla
Date Posted: 20/Oct/2009 at 11:45pm
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they have no buisness thats why it is costly as suggested by many view of master ------------- buy and forget for long term |
Posted By: Crimsonarcher
Date 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!. |
Posted By: Crimsonarcher
Date Posted: 21/Oct/2009 at 2:50pm
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. |
Posted By: j2eeprofessiona
Date 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... |
Posted By: subu76
Date 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.
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Posted By: subu76
Date Posted: 21/Oct/2009 at 10:18pm
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Deleted |
Posted By: Crimsonarcher
Date Posted: 23/Oct/2009 at 4:03pm
yeah... its amazing what you can do with the stock market. I've even forgotten about the reliance power IPO... what they had proposed in the prospectus would all comeup by 2017...but they got the money upfront for all of that 
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Posted By: Fardeen
Date Posted: 27/Oct/2009 at 1:17am
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I would like to add 2 important aspects to avoid this IPO:
1. Since the company is still to begin its operations, it has no income from operations and earned Rs 141 crore as other income in FY09. As such, it cannot be evaluated based on price-earnings model.
2.The uncertainty is higher in this case as the first commissioning is almost 3 years away. Further, the progress in each project is still limited, which may get further delayed, as there is no formal agreement for debt financing so far. Further, it will require a total of Rs 7,800 crore of equity for its announced. ------------- Success in not final and failure is not fatal, it is the courage to continue that counts. |
Posted By: samirarora
Date Posted: 27/Oct/2009 at 9:07am
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Also, the land designated for this project, which was taken from farmers on lease, as become an issue, as farmers were told that this would be used for IT and there will be lot of progress in the area, and now they find there is going to be this power project and now they are threatening that they will do whatever they can, but will not let the project come up, as pollution will make useless surrounding areas as well, and hence they will be totally out of livelihoods.. there was this full article on UTV bloomberg.
They also showed the land itself and not even boundary walls are there.. not even a single brick has been laid.
Seems like indiabulls has raised a lot of cash for project they have thought of doing, but where , nothing has even begun .
Permission from Environment and Pollution board is sought for this project and they have not even received that till now.
Why dont people just buy some solid power company already listed... ?
Indiabulls power is going to bomb on listing and if not, i will be very surprised!!!
best wishes,
samir ------------- |
Posted By: venkat
Date Posted: 27/Oct/2009 at 9:33am
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A similar play was Austral Coke with an IPO price of 195 sub levels where it is now trading at 16 Rs. Trust our Investment Bankers to value our companies properly. A jhopda can have a MarketCap of 1000 crores in their eyes!  ------------- Life is always a fight....to finish at the start line. Problem-Use challenge, Tension-Use excitement,Ican't-Use i can,avoid no at the beginning of sentence. |
Posted By: Crimsonarcher
Date Posted: 27/Oct/2009 at 10:41am
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Posted By: j2eeprofessiona
Date Posted: 27/Oct/2009 at 10:44am
small correction here....Austral coke is 16rs as a FV rs1 share so if you want to compare it with its IPO (at that time it was FV rs10 share) price you should compare 195rs vs 160 rs....and not 16.... Dissclaimer : pls avoid this cos.....its a fraud company... |
Posted By: Crimsonarcher
Date Posted: 27/Oct/2009 at 11:38am
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Posted By: j2eeprofessiona
Date Posted: 28/Oct/2009 at 1:11pm
well you know its always a good sign for a vigilant investor....when such companies quoting at 200rs decides to split its FV it is a strong signal to the vigilant investor that something is amiss here...you know they gave bonus shares...split the FV to rs 1 and then planned to raise huge amount of money...now all this in a matter of one month....when such things happen one should be extremely cautious of investing in such a firm... |
Posted By: Crimsonarcher
Date Posted: 30/Oct/2009 at 1:56pm
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Finally it listed and is now trading at 39Rs, or some 13% discount to issue price. Watch it go a lot lower...again retail investors would get burnt like in case of Reliance Power all in the hopes of listing gains from a 'Well Established' promoter..
If indiabulls were really serious about investor money, they would first fix the business model of their retail division, and not keep churning out companies by taking on more and more money from investors in order to build a 'Group of Companies'. Did Google ever launch every new product of theirs under a new company and after they launched google get into the power busines, financial services, real estate etc? they would diversify only if the original shareholders would benefit, not for the benefit of promoters only. |
Posted By: j2eeprofessiona
Date Posted: 30/Oct/2009 at 2:07pm
well, to be honest after seeing the condition of so many power IPOs and the valuation of Indiabulls power, if the investors expected to make money of this overtly priced IPO then they deserved to be doomed.... |
Posted By: Crimsonarcher
Date Posted: 30/Oct/2009 at 3:28pm
| Exactly... you will make money ONLY if the business does well..but in this case there is no business itself..so you can imagine how well you will do! |
Posted By: Crimsonarcher
Date Posted: 30/Oct/2009 at 5:21pm
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"The company, which is in the process of developing four power projects in India, has sold 16.98% of its stake through the IPO excluding the greenshoe option. Including the greenshoe, it would be 19.04%."
The company, which is in the process of developing four power projects in India, has sold 16.98% of its stake through the IPO excluding the greenshoe option. Including the greenshoe, it would be 19.04%. The issue was subscribed nearly 22 times, though retail customers bid for just 1.1 times their allocated lot. Institutional investors bid for 40.5 times the number of shares earmarked for them, while high net worth individuals' portion was subscribed 5.8 times. 1. At what price did promotors subscribe to the shares?? I'm sure its not 45 Rs. 2. They gave some 17% shares to the public and raised 1500Cr, but still hold 83% of the company with themselves, and i'm sure they hardly paid any amount for this. Would you give 17% ownership of your house for 1 Cr, while retain 83% of your house for no down payment? In effect someone else is paying for you to stay in your house!!! 3. Retail investors had low subsription, while Institutional investors subsribed 40 times...does the money belong to the institutional investors? would they do the same with their own money?? Of course not...institutional money again comes from retail investors and other companies.. So you decide if this IPO is worth it. |
Posted By: subu76
Date Posted: 02/Nov/2009 at 10:58pm
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One must admire the adroitness of the promoters in raising money from the markets.
A few years back they saw the real estate wave and picked up money for their real estate plans. Now they saw the "Power" wave and picked up money for their power ventures.
If green were to be the next hot think...i'd surely expect India Bulls Green to be next in queue.
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Posted By: Crimsonarcher
Date Posted: 02/Nov/2009 at 7:12am
yeah and not to mention the retail and financial services plan...retail is in doldrums...but stilll they want to launch one company after another to make another conglomerate...just milking indians as both investors and consumers |
Posted By: samirarora
Date Posted: 02/Nov/2009 at 8:15am
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A friend of mine subscribed for 2000 shares ( I advised him strongly not to buy, but he was sure) and he subscribed thinking he will get 300-400 due to oversubscription.. and guess what, he was alloted 1500 shares!!!!
i guess they can keep announcing 6 times oversubscribed, 20 times.. or even 30 times, but it is possible, that sometimes its a scam, as the oversubscription can be cancelled on some pretext or the other... no pan no. or whatever....
Meanwhile, have a look at this little article on india bulls on Bloomberg UTV.....
http://www.bloombergutv.com/industry-news/power-and-energy-industry-news/35105/indiabulls-power--ground-report.html - http://www.bloombergutv.com/industry-news/power-and-energy-industry-news/35105/indiabulls-power--ground-report.html
best wishes,
samir. ------------- |
Posted By: Crimsonarcher
Date Posted: 02/Nov/2009 at 8:50am
| Exactly...people think its only a 40-45 rs a share, and i'm getting 2000 shares so its great..but not one person realises the value of it could be less than 5 rs also because they are issuing shares by the crores. Its just paper for them, but you are putting your money with the promotor. I'm not sure if they exercised the greenshoe option (i think they would have), in which case your friend would have got the complete 2000 shares...and would have to wait 5-10 years before he sees 5% returns on his money, that is if he has the patience to hold on till then. |
Posted By: Crimsonarcher
Date Posted: 03/Nov/2009 at 12:53pm
| Still going down, now at 36. There were couple of bulk deals on this stock yesterday...not sure why. Anyway i think it can correct even below 30. |
Posted By: Hitesh Shah
Date Posted: 03/Nov/2009 at 2:45pm
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I think the problem is more than just this company. The IndiaBulls Parivar is being thrashed today.
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Posted By: samirarora
Date Posted: 03/Nov/2009 at 2:51pm
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The whole market is getting properly thrashed today...
Damn!!
samir. ------------- |
Posted By: Crimsonarcher
Date Posted: 03/Nov/2009 at 4:54pm
yeah...its all down 15-20%..correction was kind of expected...mkts should correct atleast 30% from its peak, and then its a good time to get in again. |
Posted By: j2eeprofessiona
Date Posted: 03/Nov/2009 at 5:27pm
| not sure atleast or at max 30% in case of bull market.....if it corrects more than 30% then it would not be considered as bull market |
Posted By: nannu_68
Date Posted: 03/Nov/2009 at 8:03pm
I hope the correction is getting more worthwhile for you! You had earlier remarked somewhere that you were not getting what you wanted at right prices  ------------- nannu |
Posted By: tigershark
Date Posted: 03/Nov/2009 at 8:35pm
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unlike last time the correction this time is not across the board.a closer look shows that cos who have delivered on results and have giuded positively for the future are not getting thrashed around on the other hand an hul, punj, rcom etc are being sold for reasons well known. whether i spoke too early or not will be known only in hindsight
------------- understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things |
Posted By: subu76
Date Posted: 03/Nov/2009 at 1:04am
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Hopefully the market crashes much more....at the least some of these IPOs will be doomed.
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Posted By: Crimsonarcher
Date Posted: 03/Nov/2009 at 7:53am
But that doesn't guarantee people will learn..again when there is a bull market IPOs would be fully subscribed. |
Posted By: Crimsonarcher
Date Posted: 04/Nov/2009 at 3:13pm
Today its all up 5-20%..just don't understand why they were selling yesterday madly and buying today with the same gusto!. |
Posted By: nannu_68
Date Posted: 04/Nov/2009 at 3:33pm
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[/QUOTE]
Today its all up 5-20%..just don't understand why they were selling yesterday madly and buying today with the same gusto!. [/QUOTE] Was it bear hunting? Trapping a few unseasoned bears!!  ------------- nannu |
Posted By: j2eeprofessiona
Date Posted: 04/Nov/2009 at 3:33pm
maybe the warren buffet effect but one day rally would not mean too much.... |
Posted By: Hitesh Shah
Date Posted: 04/Nov/2009 at 3:43pm
There's much demand in China for bear products ------------- |
Posted By: samirarora
Date Posted: 04/Nov/2009 at 3:49pm
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yesterday market down 500 points
today market up 500 points.
All very good, but i still note a lot of my capital missing!!!! between yesterday and today!!
 ------------- |
Posted By: j2eeprofessiona
Date Posted: 04/Nov/2009 at 3:56pm
if its any consolation....you are not alone  |
Posted By: Hitesh Shah
Date Posted: 04/Nov/2009 at 8:52pm
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Same here! That means we underperformed (lost more than) the Sensex yesterday and underperformed (gained less) today ...
------------- |
Posted By: Crimsonarcher
Date Posted: 05/Nov/2009 at 5:30pm
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You could be in worse position... look at this guy from moneycontrol.
kedar_n15: I have 3300 shares @ 36.20. Should i exit at loss or hold on with this stock for few days. pls suggest?? The guy has no idea, what he bought, and why and what he should do now :) Kavita Nagpal:just sold my IPO shares and lost 25000.00rs VIKAS1375 : gray market IPO players had totally exited , so does the big falls in first two trading days after listing...tommorow onward it will trade normal.. Worse people are now clamoring for a RPower kind of bonus issue..crazy! |
Posted By: nazgul
Date Posted: 05/Nov/2009 at 6:36pm
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fortunately i exited my major portfolio sections just last week...
and again fortunately...haven't taken a big hit (a small hit though) since this 500 pt see saw. ------------- I don't do funds, i do fundas. |
Posted By: samirarora
Date Posted: 05/Nov/2009 at 8:40am
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Nazgul, if you exited last week, i think the move will prove to be a wrong one.
best wishes
samir. ------------- |
Posted By: Hitesh Shah
Date Posted: 05/Nov/2009 at 8:54am
http://www.thehindubusinessline.com/2009/11/06/stories/2009110652230100.htm - Morgan Stanley shores up Indiabulls Power buying 21 lakh shares Market-making exercise. The sole book running lead manager to the Indiabulls Power Ltd IPO of last month, Morgan Stanley, picked up a chunk of shares in the company on Thursday as a ... ------------- |
Posted By: Crimsonarcher
Date Posted: 05/Nov/2009 at 9:10am
Why is that samir...i think the mkt has run up a lot, and earnings needs to catch up with valuations...which they are not doing currently. Mkt might still go up another 10%, but it needs a time wise correction before another big upmove. |
Posted By: Crimsonarcher
Date Posted: 05/Nov/2009 at 11:36am
Seems to be working and is up 5% today. But the point is how do you value a stock with no earnings and only book value?After all you paid in the cash, and now the company only has that cash as book value. |
Posted By: subu76
Date Posted: 06/Nov/2009 at 4:20pm
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A few ideas for the promoters:
1. The company can pay some dividends from the money collected?
Atleast we can value it on an yield basis.
 2. They can announce a stock split and a bonus.
3. They can announce the beginning of a new project.
BTW my guess is the promoters are doing high fives already busy scheming about their next BIG idea.
|
Posted By: chimak10
Date Posted: 06/Nov/2009 at 5:23pm
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what the hell does it mean........market making......
Morgan Stanley shores up Indiabulls Power buying 21 lakh shares http://www.thehindubusinessline.com/2009/11/06/stories/2009110652230100.htm - http://www.thehindubusinessline.com/2009/11/06/stories/2009110652230100.htm |
Posted By: samirarora
Date Posted: 06/Nov/2009 at 5:32pm
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he he...
means, if stock crashes, like it has,they will prop it up.. even if its just artificial.. or they will play it, until more sucker investors come by so that they can dump the same on the suckers...
Did not know this practise existed.. now i know..
So is NHPC also going through 'market making'..i certainly hope not.. as i would be one of the suckers who bought into this market making!!!
best wishes,
samir. ------------- |
Posted By: chimak10
Date Posted: 06/Nov/2009 at 5:41pm
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But the article says
IPL’s Red Herring Prospectus said: “The issuer undertakes to provide market-making for at least two years from the date of listing of the securities.” I mean i haven't read the RHP...........but is this kind of stuff legal..........i don't think so????? If it is legal then it is a big shock to me atleast |
Posted By: Crimsonarcher
Date Posted: 06/Nov/2009 at 8:39am
or go in for a follow on offering/rights issue to pay the dividends....or get some gullible foreign promotor to put in some more cash to prop up the shares... sound like a ponzi scheme. |
Posted By: Hitesh Shah
Date Posted: 06/Nov/2009 at 8:57am
My point in bringing this up originally in the NHPC thread is that we should be cautious in following arguments that X, Y, and Z have bought this and so we should too since the argument was presented there. That's all. Whether MS' decision to be a market-maker for two years is an investment decision or a business decision should be understood. ------------- |
Posted By: Vivek Sukhani
Date Posted: 06/Nov/2009 at 9:33am
Market making shouldnt be at all confused with market-rigging.
Market makers are there to reduce the impact cost. Thats their main function.
By the way, if companies can issue shares with ' safety nets', then why is amrket making illegal? ------------- Jai Guru!!! |
Posted By: samirarora
Date Posted: 06/Nov/2009 at 10:04am
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I dont know if morgan stanley is doing it with private funds, or from morgan stanley public funds.. because, if MS is buying indiabulls as it promised to be 'market maker' during IPO.. i think its possible, that people holding the morgan stanley are getting a raw deal.. No doubt they might prop up the price, even 2 or 3 fold it, as someone with huge amount of money can..and even make money for the fund holders.. but to buy indiabulls, which is fundamentally a big zero at this time, and that too in huge quantity, while there are definitely better fundamental stories around, does not make feel so comfortable..
Best wishes,
samir. ------------- |
Posted By: Crimsonarcher
Date Posted: 09/Nov/2009 at 12:35pm
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Finally Mark Mobius is saying itas well
http://www.moneycontrol.com/news/market-edge/indian-ipos-over-priced-mark-mobius_423216.html |
Posted By: wiseowl
Date Posted: 09/Nov/2009 at 3:26pm
Market making is perfectly legal. There are time limits (in this case, 2 yrs) and also value limits (only upto a certain amount will be used for market making; also present in this case). The 'safety net' is a kind of price the company extracts from the lead managers for the fat fee and also for proper advice. With this, the IPOs will hopefully get priced at reasonable levels. If not, the lead- and co-managers suffer. ------------- You alone are responsible for your actions. |
Posted By: chimak10
Date Posted: 09/Nov/2009 at 3:41pm
| Oh such a simple thing........finally looked up it on the internet...........hehe i thought market making was done to jack up the price of the stock......... |
Posted By: Crimsonarcher
Date Posted: 09/Nov/2009 at 5:22pm
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Nice article: http://www.vccircle.com/500/news/indiabulls-power-ipo-a-risky-investment
Interestingly LN Mittal invested in this @ 33 Rs a share. So mkt has found its level to this price now.. 
But what is worse is inorder to make money, they would give orders to faulty chinese manufacturers purely on cost and not quality...there is just no pride in workmanship anymore!. Capitalism at its worst!! Even adani power is below IPO price at 93 now, and everybody knows the debacle of rpower! |
Posted By: samirarora
Date Posted: 09/Nov/2009 at 7:06pm
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Out of the 'newer' power stocks, only NHPC is worth a look , that too, if one is looking for atleast a 5 year horizon.... i am amazed at punters buying into the other ones..just herd mentallity, nothing else.
best wishes,
samir ------------- |
Posted By: j2eeprofessiona
Date Posted: 09/Nov/2009 at 7:11pm
i thought even adani power...isnt it true that is plants are going to generate revenues from this quarter onwards ? |
Posted By: samirarora
Date Posted: 09/Nov/2009 at 7:16pm
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Nhpc is already generating profits and has plenty of MegaWATT capacity already and actually shows Q on Q profits.. which is not the same that can be said with conviction about many new entrants. No doubt, india needs power desperately.. and everyone producing power is going to end up selling its power to some state or another.. but i rather stick with an old hand rather than a 'new' hand at this.
best wishes,
samir. ------------- |
Posted By: Hitesh Shah
Date Posted: 09/Nov/2009 at 7:20pm
IndiaBulls is not alone in this. Several other power companies have gone "Chinese". Government-owned companies in other sensitive sectors such as telecom too have gone "Chinese". Given the state of our relations with that country, I find it amazing. ------------- |
Posted By: Crimsonarcher
Date Posted: 09/Nov/2009 at 7:40pm
Exactly...how in the world would you as an investor make money in power stocks??? Tata Power, Reliance Energy, NTPC have been around for so long, and not one investor has mentioned those as multibaggers...then how come these?these? |
Posted By: Hitesh Shah
Date Posted: 09/Nov/2009 at 9:56pm
I know a mere doubling doesn't figure as a multibagger, but if one has more modest targets ...
I think Jindal Steel and Power has also done quite well. ------------- |
Posted By: Crimsonarcher
Date Posted: 09/Nov/2009 at 8:50am
Yar you have to see the valuations also. Since march, almost everything has doubled. Valuations in march were unusually low. Let me see if any analyst recommends tata power going forward??? Even Rakesh Jhunjhunwala made good money in tata power (maxium a doubler), but that again was because he bought in the bear mkt and sold in the bull mkt. But since then he never invests in power stocks because utilities cannot give great gains ever. Max a 10% gain YOY. In anycase he has called the power stocks the 'new' internet!. That sums it up 
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Posted By: Hitesh Shah
Date Posted: 09/Nov/2009 at 8:53am
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I was just pointing out that people have made money in power stocks. That they will continue to do so was not implied
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Posted By: samirarora
Date Posted: 09/Nov/2009 at 9:18am
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Power will probabaly end the telecom way, as a utility stock and best for dividends.
having said that, one must also take into account, market fancy for a sector, and until India becomes power surplus, and i think it might take few more decades,there will always be interest in power stocks.
So,probabaly, not because of just quarter on quarter results, but due to just market fancy, power stocks will perform during bull runs.
Personally, i would not buy into the same unless its a small quantity to keep on the side... I do like PTC though, as i see power trading a better bet than generating power.
best wishes,
samir. ------------- |
Posted By: Crimsonarcher
Date Posted: 09/Nov/2009 at 9:49am
Yeah that i would agree...not to throw the baby with the bath water Power sector is hot right now or should i say 'electric', but you need to look at business models in that sector and not necessarily power producers. I too like PTC and even Sunil Hitech & Kalpataru!!
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Posted By: Crimsonarcher
Date Posted: 10/Nov/2009 at 10:55am
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Why am i not surprised!!!
http://economictimes.indiatimes.com/markets/ipos/Indiabulls-Power-hikes-public-issue-size/articleshow/5216615.cms Power project developer Indiabulls Power Ltd today said it has decided to increase the public issue size by up to 5 crore shares. Also Morgan Stanley India Company Private Ltd is acting as the stabilising Agent to the issue, it said. In all the public issue and the Green-Shoe option, if exercised in full, would aggregate to 39.07 crore equity shares amounting to Rs 1,758.15 crore, it said.!! 39Cr shares just to the public, not sure how many are there with promotors, institutions etc...talk about creating money from thin air!. |
Posted By: Crimsonarcher
Date Posted: 07/Feb/2010 at 10:09am
| Just saw the shareholdings of this company today, and promotors control over 80% of the equity, and I'm not sure how much they invested to get hold of that, against the public which had to shell out 45 rs a share only to lose 30% of it post issue. I hope people would be wise to invest with them next time!!! |
Posted By: aloksahi1971
Date Posted: 07/Feb/2010 at 10:12am
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Sir, I believe next year belongs to this and Adani power. If you hold it it might be wise to sit tight. ------------- Born To Golf forced to work. |
Posted By: Crimsonarcher
Date Posted: 08/Feb/2010 at 12:28pm
| And why do you say that even after Retail investors have lost 30% after the IPO? |
Posted By: aloksahi1971
Date Posted: 08/Feb/2010 at 3:43pm
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notional loss I am yet to sell. Have conviction in what you buy or dont buy. There is a difference between speculation and investing. I have invested in this stock because I am from a very very resourse starved and economicaly challenged place. I believe most of the problems will disapear if we have 24 hours electricity.
These people have delivered on India Bulls Securities it was a Rs 16 IPO if I remember correctly ------------- Born To Golf forced to work. |
Posted By: j2eeprofessiona
Date Posted: 08/Feb/2010 at 4:01pm
i personally like JSW energy also. it belongs to a group who has created huge wealth for its investors and is right now sitting on maximum about of soon-to-be-delivered capacities. |
Posted By: Crimsonarcher
Date Posted: 08/Feb/2010 at 5:05pm
| Yeah thats true...Indiabulls has been a performer though they have had their hits and misses. This should do well in the long term for sure, and their capacities are only 1/2 to 1/3 of what Reliance is planning, so its bound to do well. |
Posted By: EMANI
Date Posted: 08/Feb/2010 at 5:52pm
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The company on 25.01.2010 has informed the exchange that the IPO procceds have been utilised in terms of the prospectus.
------------- esn |
Posted By: Crimsonarcher
Date Posted: 08/Feb/2010 at 9:30am
| But that is the point, how many retail investors read the prospectus...they can't even make out if Rs45 is a good price to buy this stock or not. But I'm a fan of the company for the businesses they have built so rapidly...they might have some crashes esp the retail arm but they can execute as well as anybody!. |
Posted By: smartcat
Date Posted: 08/Feb/2010 at 11:23am
| Power companies have successfully converted god-fearing retail investors into 'Private Equity' investors. Most power companies are in such a nascent stage of developing their business that only PE investors would normally be interested in investing. |
Posted By: nav_1996
Date Posted: 09/Feb/2010 at 12:10pm
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And folks who invested in IB Power, Adanai power chose not to invest in NTPC. Real PE investors
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Posted By: aloksahi1971
Date Posted: 09/Feb/2010 at 1:05pm
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NTPC price has already been discovered and most retail investors have seen it has a very hindu rate of growth. Their project execution is flawed. All their projects have a slur of kickbacks indicating that choosing partners or suppliers is not dependent solely on cheap and best rather some other motive. Now that it will lose its monopoly it will go the same way as BSNL or MTNL. The only bright part is that they will have captive buyers for their produce.
The scallinng up in India Bulls power , reliance poer or Adani will be at a much much heigher level. ------------- Born To Golf forced to work. |
Posted By: Crimsonarcher
Date Posted: 09/Feb/2010 at 2:06pm
| Yeah thats true...power would go like Telecom..its high time. Living in the 21st century with cheap mobiles and Software giants, the idea of load-shedding/power cuts is way outdated. Hopefully this would bring in the much needed power and investor returns. |
Posted By: Crimsonarcher
Date Posted: 17/Feb/2010 at 2:54pm
| Finally it hits its all time low of 30.50-55. So i guess you have to wait for a long time for any returns!. |
Posted By: aloksahi1971
Date Posted: 17/Feb/2010 at 3:40pm
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Patience pays in the stock market !!! Money in the long term moves from those who play the stock market to those who spend the trading hours Golfing!!!!!! ------------- Born To Golf forced to work. |
Posted By: Crimsonarcher
Date Posted: 18/Feb/2010 at 4:08pm
| If it was a choice between holding my cash or parting with it for 'Patience' i'd prefer cash anyday!. |
Posted By: aloksahi1971
Date Posted: 18/Feb/2010 at 10:06am
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Each to his own Sir! Conviction is difficult to come by! ------------- Born To Golf forced to work. |
Posted By: Crimsonarcher
Date Posted: 18/Feb/2010 at 10:43am
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Posted By: aloksahi1971
Date Posted: 19/Feb/2010 at 3:14pm
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Look at price of a stock if you need to buy or sell it.The goal is to know the direction of a company . In case one is trading I feel the technicals matter.But If a person is willing to wager on the long term prospect of the company and he has no need of the cash invested then the stock price is hardly a matter. i plan to sell This particular share in 4 years time when a number of power projects of the company will be either commisioned or in the final stage so let us expect that the price then is Rs 120/ .Say a gain of 50% every year How About that now!!!! The ticker in my opinion is the state of the mind of the FII at any given point of time fundamentals are far more easy to predict than the flow of capital to the bazar if in the long term you require Power you need these Generation companies. ------------- Born To Golf forced to work. |
Posted By: TCSer
Date Posted: 19/Feb/2010 at 7:05pm
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Alokji In which other forthcoming IPOs are u thinking of applying? Did u applied in Texmo? |
Posted By: Crimsonarcher
Date Posted: 25/Feb/2010 at 4:51pm
| Keeps going down!. |
Posted By: aloksahi1971
Date Posted: 26/Feb/2010 at 11:46am
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I have it but dont track the price I will see the price only in 2012 August let me play BLIND POKKER here. ------------- Born To Golf forced to work. |
Posted By: manish anand
Date Posted: 05/Mar/2010 at 5:08pm
I don't have much idea about that but you can refer to dalal street investment journal. They will guide you better as they are into this for last 24 years. www.dsij.in |
Posted By: Crimsonarcher
Date Posted: 05/Mar/2010 at 6:37pm
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Its not hard to find the information. Check this out http://economictimes.indiatimes.com/markets/real-estate/news-/Farallon-LNM-to-pick-stake-in-Indiabulls-co-invest-Rs-1580-cr/articleshow/2784336.cms Indiabulls real estate picked up 58% of the company at 10 Rs a share, Farallon 14%@34Rs/share and LNM 8.5%@33Rs/share at the peak of the mkt. Since then they have sold to the public at 45 Rs a share and no wonder its drifting towards book value of closer to 30 Rs a share, which is nothing but capital put into the company. So if you want to buy this, this is a great price, similar to what many of the foreign investors have bought into...people investing in the IPO have already lost 30% of their money here!. |
Posted By: Monkey
Date Posted: 05/Mar/2010 at 10:29pm
This is one more instance (in addition to one which was in thread "My investing startegy") of Manish Anand trying to advertise that particular magazine.
Well.... I have nothing against anyone or any magazine. I just want to highlight advertisement being done.
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Posted By: excel_monkey
Date Posted: 08/Jul/2010 at 5:18am
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at Rs. 30 against issue price of Rs. 45
Indiabulls Power is quoting at a P/B of 1.6 the cheapest amongst the newly listed power companies |
Posted By: Crimsonarcher
Date Posted: 08/Jul/2010 at 8:31am
People always find a reason to buy...how about a reason to sell??? Cheapest???What does that mean??? Didn't the company know book value before quoting for an ipo at 45 rs a share? well they did because that is the price given to ln mittal and farlon...then why higher price to retail? Also what is book for a company that has just placed orders for equipment?? isn't book the money raised from investors right now??? sometime investing just baffles me!! |
Posted By: Crimsonarcher
Date Posted: 20/Nov/2011 at 10:57am
| Now down to 10 Rs...is that a bottom? This is like 70-80% loss for investors in the IPO! |
Posted By: basant
Date Posted: 20/Nov/2011 at 11:26am
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Bottoms are made by fundamentals and sentiments of market participants not by round number prices. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: tejas.k
Date Posted: 20/Nov/2011 at 11:34am
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