Power Grid FPO
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Re: Powergrid FPO
It won't be CIL repeat but surely will be NMDC or EIL, 5-7% gain. Don't expect much as people who made money in CIL will aggresively sell and unlike CIL this won't be keep in portfolio stock for 1st timers or quick money makers. FIIs won't jump in like CIL to buy and keep knowing it might be available at lower rate once market corrects. So don't expect much. Just hope it gets good response from QIBs and later they absorb retailers who will be holding at 5% discount.
It won't be CIL repeat but surely will be NMDC or EIL, 5-7% gain. Don't expect much as people who made money in CIL will aggresively sell and unlike CIL this won't be keep in portfolio stock for 1st timers or quick money makers. FIIs won't jump in like CIL to buy and keep knowing it might be available at lower rate once market corrects. So don't expect much. Just hope it gets good response from QIBs and later they absorb retailers who will be holding at 5% discount.
Re: Powergrid FPO
Sorry I missed this topic and posted my queries regarding this in the Stocks to Watch topic. SavantGarde was kind enough to answer all my queries over there but since I found this now I'll ask my questions over here.
If I subscribe at the top band i.e 90 and the price is set at 85. What price will I get it at 85 or 90? Sorry for these questions but the only time I have invested in an IPO/FPO was last month for the Coal India IPO. So, I don't know much about it.
Sorry I missed this topic and posted my queries regarding this in the Stocks to Watch topic. SavantGarde was kind enough to answer all my queries over there but since I found this now I'll ask my questions over here.
If I subscribe at the top band i.e 90 and the price is set at 85. What price will I get it at 85 or 90? Sorry for these questions but the only time I have invested in an IPO/FPO was last month for the Coal India IPO. So, I don't know much about it.
Re: Powergrid FPO
Swati, don't mind if I answer your query.
There are 3 types of bidding used commonly. A) floor-price method - where the low price band (85 in case of PWC) is bidded. B) Price bid - Any price between 86 and 90 is price bid since sebi allows to bid in multiples of re 1. and finally C) Cut-off bid - most efficient and should always be used by retaile investors like you and me. To understand about this read further.
A cut-off bid is a sort of promise you make while application that you are paying on higher side of price-band just for security but you'll get shares on "price discovered". Price discovered is a price at which after checking all applications, market situation, company's will to give extra premium to all investors etc. Suppose most application in PGC comes at 85 instead of 90, PGC will made to fix price at 85. In some cases, company on own discrition leave some money on table like Gujarat Pipavav where shares were given rs 2 lower than cut-off just to keep confidence of investors.
Not confusing you any further in simple words, it's a promise to company that I'm ready to take your shares at price you decide. If company decide 85, you get back rs 5. If company decide 90, you get preference over rs 90 price bidders (part B above) because you trusted them for any price. Hence if you bid at cut-off you are rest assured to get some shares and at value decided and chance of rejection or full refund is almost nil.
Therefore it is always advisible to bid at cut-off barring some exceptional cases like of NTPC, NMDC where most people bidded at lower band as there were less applications in retail. Even though those who bidded at cut-off got at lower price-band but it was real lower-band bidders who made price discovered at lower end.
Swati, don't mind if I answer your query.
There are 3 types of bidding used commonly. A) floor-price method - where the low price band (85 in case of PWC) is bidded. B) Price bid - Any price between 86 and 90 is price bid since sebi allows to bid in multiples of re 1. and finally C) Cut-off bid - most efficient and should always be used by retaile investors like you and me. To understand about this read further.
A cut-off bid is a sort of promise you make while application that you are paying on higher side of price-band just for security but you'll get shares on "price discovered". Price discovered is a price at which after checking all applications, market situation, company's will to give extra premium to all investors etc. Suppose most application in PGC comes at 85 instead of 90, PGC will made to fix price at 85. In some cases, company on own discrition leave some money on table like Gujarat Pipavav where shares were given rs 2 lower than cut-off just to keep confidence of investors.
Not confusing you any further in simple words, it's a promise to company that I'm ready to take your shares at price you decide. If company decide 85, you get back rs 5. If company decide 90, you get preference over rs 90 price bidders (part B above) because you trusted them for any price. Hence if you bid at cut-off you are rest assured to get some shares and at value decided and chance of rejection or full refund is almost nil.
Therefore it is always advisible to bid at cut-off barring some exceptional cases like of NTPC, NMDC where most people bidded at lower band as there were less applications in retail. Even though those who bidded at cut-off got at lower price-band but it was real lower-band bidders who made price discovered at lower end.
Re: Powergrid FPO
CUTOFF BID - Only Retail investors are allowed to make cutoff bids as explained above.
Cut off bid and or price bid at 90,have same priority of allotment,refund if price discovered at lower rate.
both stands chance of rejection or full refund if no allotment due to technical rejection or unsuccessful in Lottery if issue is heavily oversubscribed above retail limit and allotments done by Lottery.
cutoff bids is only a fascility to Retail investors,which one should avail , but no guarantee for share allotment.
CUTOFF BID - Only Retail investors are allowed to make cutoff bids as explained above.
Cut off bid and or price bid at 90,have same priority of allotment,refund if price discovered at lower rate.
both stands chance of rejection or full refund if no allotment due to technical rejection or unsuccessful in Lottery if issue is heavily oversubscribed above retail limit and allotments done by Lottery.
cutoff bids is only a fascility to Retail investors,which one should avail , but no guarantee for share allotment.
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Re: Powergrid FPO
Retail quota is 2640 crore and may be expected 2 to 3 times oversubscribed in Retail.
QIB closes on 11th , so watch QIB oversubscription on 11th close and apply on 12th which is open for Retail
1. Retail limit is 1 lac in this issue , so person applying for full 1105 shares may expect app 500 shares.
2. one should apply for minimum 195/260 shares to have firm proportionate allotment.
3. Retail will get shares @85.50 (if higher price of 90 declared after closure), this may give good listing gain
4. Retail should apply at cutoff rates which is 90/
APPLY
Retail quota is 2640 crore and may be expected 2 to 3 times oversubscribed in Retail.
QIB closes on 11th , so watch QIB oversubscription on 11th close and apply on 12th which is open for Retail
1. Retail limit is 1 lac in this issue , so person applying for full 1105 shares may expect app 500 shares.
2. one should apply for minimum 195/260 shares to have firm proportionate allotment.
3. Retail will get shares @85.50 (if higher price of 90 declared after closure), this may give good listing gain
4. Retail should apply at cutoff rates which is 90/
APPLY
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