What green shoe? Green or red or white or whatever is the colour of the shoe we the retail investors got hit by them badly. Thats all. Green shoe option is a big humbug as we saw in Indiabulls power.
Simply put it, as per Business Line 178, as per Economic Times 251, as per my brokerage house 127 i.e. 178 + 251 + 127 / 3 = 185.
Business Standard indicated P/E 36.1. As it is loss making company, I considered his analysis is rubbish or he may have vested ineterest in recommending to investors.
Economic Times is so bullish, I am surprised. He valued on Book Value.
EV/sales comes to 3.1- 3.3 times. However, excluding the share of revenue of the Star-Den JV, thereby keeping just the cable distribution revenue, the EV/sales comes to 6.4 - 6.8 times. Wire & Wireless India is trading at EV/sales of 4.2 times. Business Line indicated EV/Sales 3.8 times but Business Line has not given figures. So took consensus value.
Price to Book Value 4.5 times. WWIL is 5 times, Dish TV 6 times.
Considering EV/Sales as well as Book Value, arrived at 185 (consensus). If you take only EV/Sales, value comes just Rs.127. But Economic Times said it is big player than Dish TV & WWIL, so, deserves high valuation. Hence, I arrived at consensus figure.
The basis of arriving at the issue price of Rs 195 - Rs 205, the lead manager was promptly said that the company has issued shares at Rs 190 to other investors on 29 July 2009.
hai, kya baat hai koi message hi nahi aaya, den ke bare me koi nahi pooch raha, lagta hai ki log ab chu...a nahi ban rahe, bechare kafi loss de kar chup ho gaye he.......
41. Ravi, How you got this value as Rs.185. Company's mkt.cap is 2800. Ebidta is negative. Promoter is planning to built company entirely on public money. And projecting future earning considering the analogue subscriber will buy his digital set top boxxes and thus he will get revenue out of it. Even objects of issue talks about utilisation of 250cr. and not 400cr.
Its value is Rs.185. Investors should wait for dip to around 135 to ACCUMULATE.
Speculators could SUBSCRIBE keeping in mind stop-loss in the IPO price band of Rs.195 - 205 (Speculation / Technical Analysis is not only for intra-day, it can be applied for multiple time frames like one week, one month, three months, one year, three years, five years etc). Multiple time-frame analysis increases your odds of success.
The television distribution is highly competitive. The market is very fragmented. Also, with increased adoption of direct-to-home (DTH), the DTH subscriber base is expected to grow (competition to Cable TV).
The cable distribution industry is prone to under-reporting by Cable Operators the number of subscribers, thereby impacting revenue. In addition, the service quality of Cable Operators will impact subscriber preference.
Hi ALL, This will be another Thinksoft. Retail investors will not fancy. However will be taken up and down by vested brokers. High risk high return game.