Motilal Oswal Financial Services Ltd IPO Message Board (Page 13)

overpriced issue. greedy promoter. it will get subscribed. last week there was no premium. suddenly, websites show a premium of 150. nice way to make the issue subscribe.

Even puravankara had a premium till the issue was open. now there is a discount. those who have applied based on the premium, would loose their money.

Sanjay Kavi,
I genuinely agree with your statement.But dude there is big phobia is going around with this MOS IPO. Its a tough decision for go for it. As this the last reputed IPO for time being. Any good indication from all the members might give us hint whats to take decision, as any IPO goes with the market.

Dear friends,
please discuss fruitful matter only and stop to cheat or misguide others.If u have some knowledge or information than only come to this message board otherwise please go and sleep and do not waste money o other guys who follow this board news.

The IPO is grossly overpriced. No investor is going to gain. Promoters will become richer, of course.

Advice to all; AVOID the issue. Pick up from secondary market after atleast 6 months of listing and declaration of financial performance, whichever is later.

On what basis are people talking about grey market premiums??
this price band is just too much!!!!

It is going to be another Puravankara IPO. In four days it hardly subscribe and they are going to reprice their issue for 400 rupees. As most of us rightly pointed out they are not the big broking company for charging this huge premium. Better stay away with this IPO

DEAR JO,
I M NOT AT ALL RECOMONDING THE ISSUE,
BUT I THINK PREMIUM IS DEFENATLY 50-100 Rs IN MOTILAL

What do u say guys????// Should we apply in this IPO?

do you really want to buy a 379 crore revenue company for over 2300 crores ? India bulls with TTM revenues of 1500 crores is available for 12-13000 crores.

Inidabulls has 4,50,000 customers compared to 200,000 of motilal oswal. Indiabulls has TTM EPS 28.55 and P/E at CMP 550 of 19.2 compared to motilal's p/e of 33.6 as correctly calculated by vishal earlier.

geojit has sales of 104.7 crores and it is available for about 850 crores. emkay with revenues of 55 Crores is available for 245 crores

At best the priceband should have been 350 to 450. Now the promoters will become rich quickly but can not say the same about the investors.

This issue is grossly overpriced.
all the best
jo

Motilal Oswal Financial Services Ltd’s initial public offering of 29,82,710 equity shares of Rs 5 each through 100% book building process opens on August 20, and closes August 23.

The price band for the issue has been fixed at Rs 725-825 per equity share. After reserving 1,42,310 shares for employees, the net issue to the public will be 28,40,400 shares. The total issue will constitute 10.5% and net issue 10% of the post-issue paid-up capital.

The company wants to raise funds to support its growth through long term capital deployment, enhanced facility for broking customers, additional office space and technology advancement.

Motilal Oswal is primarily focused on retail wealth management and institutional broking, investment banking and venture capital management.

For the year ended March 31, 2007, the company's consolidated revenue and net profit stood at Rs 379.12 crore and Rs 69.58 crore, respectively.


SO EXACT EPS COMES OUT EPS = 69.58/2.84 = 24.5
P/E = 825/24.5 = 33.67 ( POST ISSUE )
Happy investing.........

Can u tell me how the company decide for the price band in company IPO . what are the maine component for decideing the price band.

MOST IPO -
They had done a Prive placement for one FII at 518 in early 2007. so that's a max down for this stock and i guess this can be fairly trade between 595-792.

its really funny the company is thinking that we all are mad that it ask for to huge premium and we will pay that INDIABUll is no 1 company and is trading atv 550 tag with the face valur of rs 10 and the just growing company is asking for so many huge premium.

Motilal Oswal Financial Services is a leading broking house which is now entering the capital market with issue of 2.98 million equity shares of Rs. 5 each in the price band of Rs. 725 to 825. The issue constitute 10.5% of post issue equity.

Company is a leading broking house with good brand image and very good customer base. It appears that valuations are big high but still I my opinion will give good return to the investors.

As per DRHP Company’s revenue for 9M Dec. 06 is 254.58 Crores with PAT of Rs. 49.62 Crores which gives Annualized Revenue of 339.44 Crores with PAT of Rs. 66.16 Crores and an EPS of Rs. 23.29 on Rs. 5 Paid Equity Share on Post Issue Equity of Rs. 14.2 Crores.

Let us compare this with other peers in broking sector. Two prominent players are Indiabulls Financial Services and India Infoline. Others are Emkay Shares, Geojit and IL & FS. Most comparable peer is India Infoline with revenue of Rs. 272 Crores For FY06 and Market Cap of Rs. 3720 Crores.

On the basis of PE, Emkay trades at 23.4X, Geojit 34.1X, IL&FS 48.8X, India Infoline 71.4X and Indiabulls 24X with average of around 37 which gives a price of Rs. 862 for Motilal Oswal’s shares. On the basis of Market Cap to Sales Emkay trades at 4.1X, Geojit 8.3X, IL&FS 12.7X, India Infoline 13.7X and Indiabulls at 10.2X with average of around 11which gives market cap of Rs. 3734 Crores which gives per share value of Rs. 1314. Averaging on both prices gives around 1088 or say 1100 per share which gives 33% return over its higher price band.

In view of this investors can invest in the issue for moderate kind of gains (at least) and can provide good gains if market sentiments are not bearish.

I think Motilal Oswal is comparing itself with Reliance Ind its price band says so, FV of rs.5 & PB 725to825, very funny. avoid this IPO please.

Its really to costly.... Please avoid such ipos in such a volatile market .. . .

guys discuss motial oswal ipo yaar not all market gupshup

Avoid Avoid Avoid Avoid. Its a too high price and if MOFSL wants to get money then it has to cut down price

nothing is going to happen with the market ..they will just go further 300 to 500 points down and than they will move quickly upwards where they was . don't worry about yr investment .

"A Film is generally Super Hit because of its Starcast & Songs."
Well, Similar is the case also. When market is booming every IPO whether a good or a bad one, both give excellent returns on listing. When their is downside, no one is there to even think about the company. Best example of this is Purvankara IPO.
So, this IPO also have to suffer the market downside. Just research about the pricing & valuation of company before investing in IPO, as it may be possible that IPO is fairly priced on the basis of earnings potential of company.
So,
"Research before Investing, not After..."