It is likely to be listed with nominal premium.Donot sell if it goes below issue price. Hold the stock till Jan16 as many good movies will be released near Diwali,X mass, new year. The stock may cross 1000 by that time.
Strange but truth !!!!! i had not been allotted UFO shares in 24 shares one & only application, lagta hai koi mere ko happy-happy nahi dekhana chaata hai ? kisi ki nazar lag gayi hai... koi baat nahi , main listing ke din kama ke dikhaunga !! saari duniya dekhegi
Possible scenarios and what is the right price to enter on listing day: Given the bearish market sentiments, UFO is not expected to attract a significant premium on the listing day. Given this, should one buy on the listing day.
Rough Valuations first: At an issue price of 625/-, UFO''s market cap works out to 1618 crores. This implies a P/E multiple of roughly 32.
If the stock corrects: 1. The stock corrects by 10%. (quite possible). P/E would work out to ~29 odd. Offers reasonable amount of Margin of Safety to enter. Not so much. 2. The stock corrects by 20%. (not an out of the box scenario). P/E would work out to ~25 odd. Offers a lot of Margin of Safety (MoS) to buy the stock.
On the contrary, this is definitely a stock to hold on for the long term. It is quite possible that this stock might list on a significant premium. Given the unique business model I would be a buyer if I have reasonable MoS.
All the very best for folks who had applied. :-)
Thanks, Ravi S Disclosure: Have not applied for the IPO. Will enter if I have a reasonable amount of Margin of Safety.
Market condition is good or bad, UFO Moviez will list around 700 or more. Reason is simple. MEP Infra was barely subscribed and even FII showed little interest but it is still standing well.
UFO moviez, lot of interest shown by FII (with 5 times subscription) and also it is making profits compared to loss by MEP Infra. UFO has unique business model. There are lot of factors which are positive and I believe, UFO will easily attract PE of 40 to 50 similar to Just Dial.
I have applied in this IPO and expecting good returns.
srikant C, MEP is not doing well...chahe market condition achchi hoti...to bhi MEP ki halat buri hoti, I did not apply even for MEP since fundamentals were bad & co is in deep loss. UFO is doing well & its a good stock to keep for long term.
@Creative, I am not saying MEP is doing great. Compared to issue price@63, it is still able to quote around 58 to 59 even though market is in bearish mode. MEP Infra has continuously made losses and also is an Infra company. If you compare UFO and MEP, UFO should easily list at good premium. This is what I meant to say.