From what i have gathered is that u can sell fully paid equity shares which also means that the co. has the right to adjust any excess amount payable after allotment. Obviously any amount/balance due on the payment of the shares after the due date of the payment would lead to the forfieture. So u can sell once the payments r made going by the oversubcription details already, its gotta be just sheer luck that to be alloted shares but do expect very good listing as a lot u will bid for it at the secondary mkrt given the huge appetite
Hello,
I have doubt regarding the payment for shares. Suppose I choose the option of paying only Rs. 16. 1. It won't affect the number of shares allotted to me when compared to someone who paid 62 ? ( pretty sure of this, but still) 2. When and how will I pay the rest of the amount ?
I have doubt regarding the payment for shares. Suppose I choose the option of paying only Rs. 16. 1. It won't affect the number of shares allotted to me when compared to someone who paid 62 ? ( pretty sure of this, but still---no it will not affect allotment 2. When and how will I pay the rest of the amount ?
relinace/karvy will inform u by when, how and what mode u have to make the payemnt, yes provisions can be made for it to be done thru ur existing broker. confirmed with icicidirect(thru which i trade) that they reserve the right to debit my account for bal payment
thanks, +marc
think i change my view about getting allottemnt as the lastest figures are of 2.4 times oversubcription for retail level, good possiblity of being alloted shares. Think instituional appetite will be there for this stock so like i said one can expect good listing gains if not long term....
In general, are there any percentage of shares reserved for retail subscribers ? or is it to the discretion of the company issuing ipo ? for RPL , how many shares are reserved for retailers ?
when will i come to know how many shares are allotted for me ? when they return the money back, will they pay interest for the amount ?
and a very basic question. i find that transactions are closed at 3:30 pm in icici direct. but indices keep changing till some time later in the evening. when does the markets close exactly ?
DO NOT MISS this month's special issue of "Dalal Street"...In many ways its a "Once in a LifeTime" kinda thng...Ofcourse u have the regular 20 Hot Stocks thingy 4 the coming FY alongwith all those spcl artcles by MDA n the likes...But what I loved most was the space dedicated to the "Evolution of our Stock Mkts" so 2 say...Last 15 odd pages jus 4 that...N trust me, it makes for VERY VERY GOOD n INTERESTING reading...
Needless 2 say...This spcl issue comes at 100 bucks as opposed to the regular 50...
In general, are there any percentage of shares reserved for retail subscribers ? or is it to the discretion of the company issuing ipo ? for RPL , how many shares are reserved for retailers ?
when will i come to know how many shares are allotted for me ? when they return the money back, will they pay interest for the amount ?
and a very basic question. i find that transactions are closed at 3:30 pm in icici direct. but indices keep changing till some time later in the evening. when does the markets close exactly ?
+marc
According to the article I was going through the other day.. RPL has 10% of the total shares reserved for Retail investors..... which is equivalent to the figure of 13.5 crore equity shares....
it takes about three weeks after you place your bid, that you are allotted the shares and the money is refunded to you (if applicable).. and NO, they don't pay any interest for that period...
is there any difference between Stock Split and Bonus.. if yes what...?
and if they both are same... then does the face value of a share gets reduced by same %ge... ex: Currently Infosys 1 share Face Value is Rs5 Will it reduce to Rs 2.5 after Bonus...?
otherwise... is it like.. after bonus.. a person will have two shares (1+1) each of Rs 5( Face Value ) but with the current market price going down to Rs 1500.. ? If this is the case then the only benefit I can see out of this entire procedure is that now when the share price comes down to Rs 1500, it becomes easy to trade in the market as compared to an earlier price of Rs 3000.
--- Could not make my question any more simple... ??:
is there any difference between Stock Split and Bonus.. if yes what...?
and if they both are same... then does the face value of a share gets reduced by same %ge... ex: Currently Infosys 1 share Face Value is Rs5 Will it reduce to Rs 2.5 after Bonus...?
otherwise... is it like.. after bonus.. a person will have two shares (1+1) each of Rs 5( Face Value ) but with the current market price going down to Rs 1500.. ? If this is the case then the only benefit I can see out of this entire procedure is that now when the share price comes down to Rs 1500, it becomes easy to trade in the market as compared to an earlier price of Rs 3000.
well kaushy.. in a stock split - the face value of a share is reduced so that it becomes more tradabale and more liquid so that a person can buy a share with less amount of money spent..in other words ,the entry cost decreases. bonus - existing shareholders or the ppl buying the share bfor record date r entitled 2 get the bonus shares (1 share for 1 share as in case of Infy),face value of the share remaining the same.Normally a bonus is issued when the financials of the company r in gud position (as in Infy case) and yes the market accounts the bonus of the shares and the market price should ideally reduce to half for 1:1 bonus.Also liquidity increases in this case also.
well kaushy.. in a stock split - the face value of a share is reduced so that it becomes more tradabale and more liquid so that a person can buy a share with less amount of money spent..in other words ,the entry cost decreases. bonus - existing shareholders or the ppl buying the share bfor record date r entitled 2 get the bonus shares (1 share for 1 share as in case of Infy),face value of the share remaining the same.Normally a bonus is issued when the financials of the company r in gud position (as in Infy case) and yes the market accounts the bonus of the shares and the market price should ideally reduce to half for 1:1 bonus.Also liquidity increases in this case also.
happy investing:)
Thanks Ashish for the explanation.. but a liitle more remains to be clarified...
Lets assume a company X whose worth is Rs 1000 plans to go public worth 10%.. i.e it plans to offload 20 shares of face value Rs 5 ( 20 *5 = 100 =10% of 1000) in the market...
Now after sometime it goes for a bonus share...of face value 5.. ( 1+1)
so now...there will be 40 shares of Rs 5 face value with the public..
Now the question is.. how do you accomodate these additional 20 shares .. has company's management reduced its %.. from earlier 90% (900/1000) to 80%(800/1000) now...?
I am sure it doesn't work this way...
or is it that.. earlier single share of Rs 5 was worth 0.5 % (5/1000) of the company.. now after bonus.. it becomes 0.25% (5/2000) ?
Thanks Ashish for the explanation.. but a liitle more remains to be clarified...
Lets assume a company X whose worth is Rs 1000 plans to go public worth 10%.. i.e it plans to offload 20 shares of face value Rs 5 ( 20 *5 = 100 =10% of 1000) in the market...
Now after sometime it goes for a bonus share...of face value 5.. ( 1+1)
so now...there will be 40 shares of Rs 5 face value with the public..
Now the question is.. how do you accomodate these additional 20 shares .. has company's management reduced its %.. from earlier 90% (900/1000) to 80%(800/1000) now...?
I am sure it doesn't work this way...
or is it that.. earlier single share of Rs 5 was worth 0.5 % (5/1000) of the company.. now after bonus.. it becomes 0.25% (5/2000) ?
Bonus shares are issued by converting the liquid reserves into shares. in your example, the additional 20 shares of Rs.5 comes from the capital reserves that company has.
Thanks Ashish for the explanation.. but a liitle more remains to be clarified...
Lets assume a company X whose worth is Rs 1000 plans to go public worth 10%.. i.e it plans to offload 20 shares of face value Rs 5 ( 20 *5 = 100 =10% of 1000) in the market...
Now after sometime it goes for a bonus share...of face value 5.. ( 1+1)
so now...there will be 40 shares of Rs 5 face value with the public..
Now the question is.. how do you accomodate these additional 20 shares .. has company's management reduced its %.. from earlier 90% (900/1000) to 80%(800/1000) now...?
I am sure it doesn't work this way...
or is it that.. earlier single share of Rs 5 was worth 0.5 % (5/1000) of the company.. now after bonus.. it becomes 0.25% (5/2000) ?
Inthis case it wud be like pre bonus scenario-90%-mgmt or promoters(900shares) n 10%-public(100 shares)... post bonus(1:1)-promoters will have 1800 share n public 200.. so there is no dilution in the stake held by ne1 in the company..
it is primaily done to improve tradability or liquidity ofthe stock... n there r some favourable tax implications in cas of bonus n not in case of stock split.. so there is more exuberance in case of bonus than in stock splits
@ Marc what does this Capital Rserve or liquid reserve mean.. and to what extent are they maintained..i.e how many bonus can a company issue in its lifetime..?
@Vishal yep.. there will be no dilution of the promoter's or Public share... and since the market price of a single share of Rs 5 has reduced by half.. so net worth of the organisation also remains the same.
One amusing thing..
Wipro's share is of Face value 2 and current market price is 550
HCL tech's share is of Face value 2 and current market price is 612
does it mean.. in the eyes of investor HCL is better valued than Wipro.. and a few months back.. Patni was quoting better than Wipro going by the same logic..
isn't it strange..? or again have I gone wrong somewhere..? 😃
Wipro's share is of Face value 2 and current market price is 550
HCL tech's share is of Face value 2 and current market price is 612
does it mean.. in the eyes of investor HCL is better valued than Wipro.. and a few months back.. Patni was quoting better than Wipro going by the same logic..
isn't it strange..? or again have I gone wrong somewhere..? :)
price of the share in the market would be guided by the EPS(EARNINGS PER SHARE) of the co. and the no. of times people are willing to acquire one share of that business ex: Infosys has EPS of around rs 110 people r willing to pay 30 times it EPS(which is also known as P/E) and therefore the price quotes @ rs 3100-3300
Seimens has eps of rs 120 but quotes @ rs 5800... people pay 50 times the EPS to get one share. Obvioulsy people wanna buy more of Seimens and willing to pay a higher price in terms of a multiple to acquire it .
Wipro's share is of Face value 2 and current market price is 550
HCL tech's share is of Face value 2 and current market price is 612
does it mean.. in the eyes of investor HCL is better valued than Wipro.. and a few months back.. Patni was quoting better than Wipro going by the same logic..
isn't it strange..? or again have I gone wrong somewhere..? :)
Yes boss..wrong... it dosent matter wat the face value is... valuation depend on earnings... if HCL n Patni n Wipro r al 2 re face value stocks...dat dosent mean market valuing them same or cos r equally good.. depends on no of shares issued by d company... if all 3 r quoting 600..n wipros eps is less than other 2...dat means market is valun that stock more n consider that co better r willin 2 pay higher price 4 dat... samjha...
@ Marc what does this Capital Rserve or liquid reserve mean.. and to what extent are they maintained..i.e how many bonus can a company issue in its lifetime..? :)
capital reserve is the raw cash that company has accumulated through profits year after year. there is no limit on the bonus that company can issue.
why has the metal sector gone crazy ? ( especially steel - tisco ) i know demand for steel from china has increased. in that case isn't this bull run short lived. when is the appropriate time to book profits.
is the Indian market being hyped over or is it actual growth?
guys,
why has the metal sector gone crazy ? ( especially steel - tisco ) i know demand for steel from china has increased. in that case isn't this bull run short lived. when is the appropriate time to book profits.
why has the metal sector gone crazy ? ( especially steel - tisco ) i know demand for steel from china has increased. in that case isn't this bull run short lived. when is the appropriate time to book profits.
+marc
Man I think the hottest sector now is commodity and mostly cement and sugar sectors looks highly promising for current as well as fro months to come and the hot picks from cement are India Cement, Mangalam Cement, JK Cement, Birla Corp and from sugar space Balrampur Chini, Triveni Engg, Rajshree Sug, KCP Sugar.
Satyam q4 results A final dividend of 250 per cent (Rs 5 per share on a par value of Rs 2 per share) has been recommended at the board meeting, subject to the approval of the shareholders. The total dividend recommended for the year is 350 per cent (Rs 7 per share on a par value of Rs 2 per share), including interim dividend of 100 per cent (Rs 2 per share on a par value of Rs 2 per share).
i had bought 7 satyam shares for Rs 827... so could someone explain the above for me and what effect does it have for me and the profit oe money i am going to get....
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