Comments on: Insecticides India Limited IPO

By: Rishi

Rishi — Wed, 23 May 2007 07:13:39 +0000

to Bullish Indian: Pls point out what you saw in the Bal Sheet that was missed by me. It would definitely enhance my knowledge level, which I shall also make note of before investing in future. Infact there are ‘n’ no. of examples when Institutional Investors sell the stock on the day of listing. This Long Term investing idea is only in the books. Whoever makes money sells the stock.

By: Bullish Indian

Bullish Indian — Tue, 22 May 2007 14:33:48 +0000

@ Rishi – What makes you think Institutional Investors don’t like small issues? When a 60 crore IPO issue like the nitin fire ipo can get huge institutional investor subscription, can’t the 40 crore Insecticides India IPO issue get even half of that? C’mon institutional investor category was undersubscribed. I did have a look at the balance sheet and so would have all the institutional investors. A good fundamental analyst would know that a balance sheet is like a mini skirt— What it reveals is interesting, what it hides is mind boggling. There is much more to the balance sheet than just EPS and PE ratio.
My hypothesis is this
1) Institutional investors have acess to a lot more information than the retail investors
2) Most retail investors invest for listing gains and sell on the day of listing. On the other hand most institutional investors are long term investors. As you say, if the institutional investors dont intend to buy insectisides India stock, because the floating stock and the free float market capitalisation is low, then they won’t buy in the secondary market as well. Then where will the counter find buying support on the day of listing when retail investors decide to sell of the shares alloted to them?
These are my personal views based on my past experience. I’m not forcing my views on others. It’s just my opinion!

By: Rishi

Rishi — Tue, 22 May 2007 12:43:01 +0000

On what basis do you say that Insecticides India IPO was not worth subscribing? Just because Institutional Investors are not subscribing you draw the conclusion that it is not worth subscribing. Why would Institutional Investors subscribe to an issue as small as 37 Cr. with just 32 lac shares on offer? Have you checked the financials of the Co.? Absolute EPS of Rs.12 on 9-monthly basis on post-issue capital.

By: Bullish Indian

Bullish Indian — Mon, 21 May 2007 01:48:54 +0000

Hello Amit, RPL is a low beta stock. It won’t move much either ways. RPL is a safe Low risk, low return stock. I don’t track RNPL

By: Bullish Indian

Bullish Indian — Mon, 21 May 2007 01:47:01 +0000

Sorry Sakthi, I don’t track that counter

By: Sakthi

Sakthi — Fri, 18 May 2007 16:55:05 +0000

I need ur advise regarding indusind bank shares as my father have bought last year about 200 shares for Rs.70 each.
Please advise me whether to sell or to hold these shares.

By: amit sharma

amit sharma — Tue, 15 May 2007 06:02:21 +0000

hi bullish indian,
thanks to your advised.
after reading your eight tips ,i have saved myself from being locking money into binanai and insectiside india like i locked in fortis.

i need your advise.
i want to buy nearabout 1000 RPL shares ( for long term say atleast 4 years) and 2500 RNRL sahres for same duration.
At what price shall i get them. i was planning to buy at 78 and 25 respectively, but they have skyrocketed to 95 and 31.
please advice as i don’t want to ruin my hard earned money

By: Bullish Indian

Bullish Indian — Fri, 11 May 2007 04:47:43 +0000

Hello Rao, The IPO is under subscribed as of now. It has been subscribed less than 0.2 times the issue size. It’s better not to invest in the Insecticides India IPO, if it doesnt get oversubscribed by atleast 3 times by 2 PM today

By: Ramana Rao

Ramana Rao — Fri, 11 May 2007 03:43:56 +0000

Dear bullishindian,

Is it adviseable to invest in “Insecticides India” now. Is it oversubscribed ?