Maytas will likely list around 450 - 500. Markets will most likely see a substantial correction tomorrow post the SEBI board meeting, would recommend to exit Maytas on opening and pick it up again at lower levels.
"We expect Maytas to trade at Rs 40.7 bn, a year from now, translating to a one-year price target of Rs 692 per share. We recommends buy with 87% upside from the issue price, Ganeshram Jayaraman of Spark Capital said.
janak things which u are talking are completely biased and i think u have have been alloted some shares and u are becoming greedy by talking such things.please people think twice before u do any thing and people mr. market analyst has forgotten th e premiums of maytas and circuit systems i have not.maytas 130-140 gmp.circuit sysytems 5-7gmp.thank you
grey market market price around 150 -155 it means it will list above 370 issue price+150=520=after 50 To 70 rs will be gain to grey market buyer in grey market) (cos thst why hes buy)=570 to 580-comon sence 370 issue price;150-155 grey price;50-70 grey buyer preium=570 to 600 listing price
Steel industry to face big iron ore price hike 23 Oct, 2007, 0700 hrs IST, REUTERS
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SYDNEY/HONG KONG: The world’s steel industry is bracing for a sixth straight year of iron ore price hikes as mining companies strive to keep up with growing demand led by China, the world’s biggest market. Iron ore prices are expected to rise 25% starting April 1, 2008, said some analysts, with some looking for a 50% hike in prices.
With the forecast showing coking coal is also on the rise, the world’s steel industry will have to decide how to deal with rising costs for its two main natural resource inputs, costs that may have to be passed on to end users.
“Markets are exceptionally tight currently, as evidenced by the surge in Chinese spot prices,” said Macquarie Research Commodities, which revised its forecast price increase to 50% from 25% this week.
“This is due mainly to booming Chinese and world steel production, the shortfall in expected iron ore production from Australians and Brazilians and slowing growth in Chinese domestic production,” the bank said last week.
Macquarie joins a swelling number of forecasters upping iron ore price predictions as major steel companies in China, Japan and Europe face off against miners CVRD, Rio Tinto and BHP Billiton. Traders said spot prices for ore from India have been rising to new records weekly, tipping a rise in contract prices of ore mined in Brazil and Australia.
Indian iron ore traded last week at $185 a tonne delivered in China, versus $160- $170 for Brazilian and under $100 for Australian term prices.
The sometimes acrimonious iron ore negotiations are the basis for industry benchmark prices and typically conclude around January each year, although at times have dragged well into the new year as tonnage levels are also established.
In this round, the issue of price differentials caused by freight rates to China from Australia versus China from Brazil, which BHP unsuccessfully tried to have addressed two years ago, is set to re-emerge , and is likely to delay settlement . BHP has argued that Chinese steel mills and other importers benefit from lower freight costs for Australian iron ore, and wants Australian ore to carry a premium to reflect the smaller shipping costs compared with Brazil.
Merrill Lynch upped its forecast to a to 50% jump from 30%. “With Chinese iron ore demand up 22% in 2007 and global demand growing at 11%, China finds itself in a weak position ahead of negotiations,” Merrill Lynch sector analyst Vicky Binns said in a report. Availability of iron ore is tighter than it was in the 2005 shipping year when contract prices rocketed 71%, Binns noted.
Iron ore prices last year rose a more modest 9.5%.
Morgan Stanley has joined Merrill and Australia’s Macquarie Bank calling for a 50% hike, citing holes in China’s domestic ore supplies and other setbacks