26 Apr 07 Fortis Healthcare Limited IPO price
Fortis Healthcare ltd has fixed its IPO price at Rs. 108 per share. The price band of the Fortis Healthcare ltd. IPO was Rs. 92 to Rs. 110. The IPO was open for subscription between April 16, 2007 and April 20, 2007. The IPO recieved mixed responses from various classes of investors. The qualified institutional buyers (QIB) category was subscribed 2.72 times, non institutional (HNI) category was subscribed 1.74 times and the retail investors category was subscribed 3.26 times. Expected listing date – Fortis Healthcare Limited is expected to list in the Indian stock markets in the second week of May.
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I applied for FORTIS IPO at a bid price of Rs. 92/- for 60 shares.Will I be getting it?
No Saptak. You wont be getting any shares. Only those who bid at Rs.108 or above or at the cutoff price will be alloted shares. Its always advisable to apply at cut off in any IPO to make sure you get allotment. The cut off feature is available only to retail investors and hence retail investors should make use of this facility. All said, It is likely that Fortis IPO will not give huge listing gains. It may even open at a discuont. Hence, you dont have to feel sad that you will miss out on allotment.
Hi Bullish,
How are you able to guestimate that fortis will list at a discount?
Also, my other question would be…
What is cut-off price? Is it 110 RS in the case of fortis?
How many do you think may have subscribed at cut-off price? Since fortis is now going to sell shares at 108 RS, it looks like not enough people have bid at 110 RS. Is that right?
Thanks
sri
Hi,
I applied for FORTIS IPO at a bid price of Rs110/- for 60 shares.Will I be getting it?
How much it will go?
kiran
Hello Kiran,
Since you applied only for 60 shares in the fortis IPO and since retail has received subscription of over 3 times, your chances of getting allotment is 1 : 3
This means that out of 3 people who applied for 60 shares, 1 will get full allotment of 60 shares and the other 2 will get no allotment.
Good luck to you. keep your fingers crossed
Hello Indian Bloggers,
The cut off price is Rs.108.
Yes, you are right. There has not been sufficinet bids at 110 to cover the entire issue size. Hence the issue price has been fixed at 108.
I guestimated based on the fact that the FORTIS IPO has managed only meagre oversubscription in the institutional category. However, if the market is good on the day of listing and on the previous day of listing, then the fortis IPO might actually list at a premium of Rs.10 to Rs.15
Cut-off price of 108 was fixed after closing the subscription date. right?
I am confused when you said the following in your IPO tips for retail investor.
“…..Retail investors has an oppurtunity to bid at cut-off price…”
What does this mean? How will retail investors know the cut off price during subscription period?
Will the auction be among all the bidders at 110,109,108 rupees?
I have actually applied for 540 shares (180 each using 3 different accounts) all at 110 RS.
Also, submit your blog to enewss.com . Your tips and stock market coverage may help our readers at enewss.com
Thanks
sri
Hello Again Indian Bloggers,
You are almost certain to get an allotment of 60 shares in each application. Hence you will be alloted a total of 180 shares of fortis healthcare
Cut off price is the issue price. Issue price is decided based on the demand, after the IPO closes. Now for the fortis IPO, the issue price has been fixed at Rs.108. Now all those who had applied at cut off, by not mentioning a price in the application form and just writting “cut off” will be issued shares at Rs.108. If the issue price of fortis had been fixed at Rs. 110 (instead of Rs.108), then the cut off price will be Rs. 110 and similarly if the issue price had been fixed at Rs. 106, the cut off price would be fixed at Rs.106
Hope this solves your confusion.
Regarding your final question…
Let’s say a company is coming out with an IPO of 4,000 shares and the price band is fixed at Rs 30 to Rs 36 per share.
The bidders can bid at any price within the price band. Seven bids have come in.
Bid price, Number of shares bid for, Cumulative shares bid
Rs 36, 1,000 shares – cummulative 1,000
Rs 35, 1,500 shares – cummulative 2,500
Rs 34, 3,000 shares – cummulative 5,500
Rs 33, 1,000 shares – cummulative 4,000
Rs 32, 1,500 shares – cummulative 5,500
Rs 31, 2,000 shares – cummulative 7,500
Rs 30, 2,500 shares – cummulative 10,000
The price discovery is a function of demand at various prices. Let me explain.
The highest price at which the company is able to issue the desired number of shares is the price at which the issue is subscribed. In the above example, Rs 33 per share (or lower) will be the cut-off price.
The reason? Including all the bidders up to Rs 33 per share will ensure the 4,000 shares will be sold.
If Rs 33 is the cut-off price, those who bid for less than Rs 33 will not be allocated any shares. Those who bid at Rs 33 or more will get the shares at Rs 33 each.
Most companies leave the issue price below the highest cut-off point so there is some scope for price appreciation for the investor. In the above example, if the cut-off is fixed at Rs 30, the issue will be oversubscribed 2.5 times and proportional allotment will have to be made.
Hope this helps
I had a look at enewss, but couldn’t figure out how to submit my website. Would be glad if you can give me instructions regarding the same, or add this site for me. My RSS feed link is
http://www.bullishindian.com/feed/
Hi Bullish Indian,
Thanks for all the answers. I never looked at the application, so, i didn’t know that one can mention ‘cut-off’ in the form.
All my questions were answered and will be looking forward to get more than 180 shares.
Here is the link to submit your blog to ‘Economy & stocks’ category
enewss.com/submitrss.php
Best regards
sri
Any idea when Fortis will be listed on NSE?
what is the price expected for the fortis health care to be listed on nse
my expectation is 120-125
is my some where near to the expert’s opinion
pls correct me if iam wrong
Its very tough predicting the listing price, but personally I expect FORTIS HEALTHCARE to list at around Rs. 115
when Fortis ll be listed?
I am in stock market since 4-5 years & my experience says that it will list around Rs. 125/- as it is a good potential company with a solid international background & definately it will be Rs. 200/- after 6-8 months.
any comments, please let me know on my email.
Hi all;
I bet that the issue will open at 120 and will end at 129 and in another 3 months it will touch the 200 mark. Hold it.
Stockfreak:)
Hi Vikas and Stockfreak,
So we have listing price guestimates of fortis healthcare starting from 115 to 125. With the markets doing very well, I wouldn’t be suprised if fortis healthcare lists at around Rs.125 but my best guess is that it will list at 115, if the markets do well on the day of listing and on the previous day of listing of the fortis IPO
Regards,
Bullish Indian
Hi All,
Thanx for the info regarding pricing.
but can any one tell where i can find
Listing date for Fortis?
regards
Hi There,
The expected listing date for fortis IPO is Wednesday the 9th of May 2007.
All the best
Cheers
listing date is 9 may
surely list wid 125 above
Wishful thinking to hope that Fortis will be listed at 115 to 125. Seeing the fate of several IPOs in the past, it seems doubtful that this IPO will fetch profits on listing. Let us hope for the best.
All,
Can anyone tell me on which site I can see whether I have been alloted shares or nor.
Thanks
hello ankit, you can check the allotment status of fortis ipo by following the instructions given in the post titled “Fortis Healthcare IPO Allotment Status and Listing Date”. You can find the link for the post above under “interesting related articles”
am i sunk with this share. got carried away with de name of ranbaxy and invested 1 lakh and it opens as a whimper what shd i do now
hello Gopal,
The Fortis healthcare IPO valuations were unjustifiable, but Fortis healthcare looks good for the long term.
I suggest you follow these tips for selecting IPO’s to invest in.
http://www.bullishindian.com/eight-tips-for-retail-investors-for-applying-in-ipo-for-listing-gains/162/
11.5.07
Please see my comments dt.5th May (Sl. No. 20). I had my own doubts about Fortis fetching any profits on listing. I do not think that it will cross the issue price of Rs. 108/- in the near future. It is better to sell at the least loss instead of waiting for any gain. Price is falling day by day.
Mr. Saxena and all,
I work with a division of L&T which is in the business of Medical Equipments and hence can suggest the actuality of Fortis Healthcare. Yes, this is a part of Ranbaxy group but the condition of the company is not very good. Their old hospital in Chandigarh has never been a profit centre. Then they came with a hospital in Noida. Then they bought Jessa ram hospital, Delhi which was in sever losses. They have also purchased a hospital each in Mumbai and Jallandhar. Finally they purchased ESCORTS.
But, the listing and current scenario (It has gone below 90) is as per my expectation. They are not growing at even an average pace. They are also getting tough competition from Max Healthcare.
The company is planning to tie up with DLF and open many hospitals throughout the country.
I dont know the future but will strongly suggest that shares should be sold on immediate basis to recover the money. Otherwise it is going to be a serious loss.
I also feel that people have been swayed away by name of FORTIS.
i should say about fortis that their hospital in chandigarh was never been a very good profit centre.
amendment
Does the investor investing at “cut-off” price is at an disadvantage than the one investing at upper band of the price. ?? Will the one applied at upper band will get the preference of shares ??
i want teh market value of
kingfisher
satyam
L&T
DR.reddys
TATA Motors
from may 5th to 9th