United Bank of India IPO Message Board (Page 28)

Ravi,Bangalore,254. sreedhar

You cannot sell before new shares come to system.

Want to check? try selling.

Could not understand what you meant by try selling.Can you elaborate?

81 - PRINCE

25-30 SHARES WILL BE ALLOT FOR FULL APPLICATION

IN APPLICATION MENTIONED - CUT-OFF PRICE, MEAN ANY PRICE WHICH HAS TO BE DECIDED

Mr. Manish cut of price is 63

i want to apply for 200 shares. what amount should i fill in the form (confused at cut off price or 66-3=63/-)

FINAL AAJ RAT KO 10 P.M. HOGA

man infra abhi letest me retail me kitna subscrip ho gaya hai?........

1 lack ki apply per kitne shares alot honge?

FORTHCOMING IPO DETAILS

Sr      NAME OF ISSUER      BOOK RUNNING LEAD MANAGERS      ISSUE TYPE      SHARES OFFERED      FACE VALUE
1      FINEOTEX CHEMICAL LIMITED      INDBANK MERCHANT BANKING SERVICES LTD      BOOK BUILDING      4211160      10
2      TRIVENI INFRASTRUCTURE DEVELOPMENT COMPANY LIMITED      India Infoline Limited      BOOK BUILDING      8000000      10
3      USHER ECO POWER LIMITED      IDBI CAPITAL MARKET SERVICES LIMITED      BOOK BUILDING      N.A      10
4      TARA HEALTH FOODS LIMITED      ATHERSTONE CAPITAL MARKETS LIMITED      BOOK BUILDING      10000000      10
5      SAI SILKS (KALAMANDIR) LIMITED      VIVRO FINANACIAL SERVICES PRIVATE LTD      FIXED PRICE      6680000      10
6      MIDFIELD INDUSTRIES LIMITED      ATHERSTONE CAPITAL MARKETS LIMITED      BOOK BUILDING      4500000      10
7      ANKITA KNIT WEAR LIMITED      ARYAMAN FINANCIAL SERVICES LIMITED      FIXED PRICE      10000000      10
8      EVEREST INFRA ENERGY LIMITED      MICROSEC CAPITAL LIMITED      BOOK BUILDING      6000000      10
9      TARAPUR TRANSFORMERS LIMITED      COMFORT SECURITIES PRIVATE LIMITED      BOOK BUILDING      8500000      10

Well said TC,Your analysis is spot on. I had applied for OIL India ,Cox,DB Corp,Infinite ,Jubilant & ARSS till now.I am thinking of applying for Man infra & UBI now.When NHPC ,Pipavav,Adani etc came I ignored all.I think if we can apply in niche sectors like Jubilant & Cox good response to such offers are confirmed & if valuations are good like OIL,DB corp.I have sold all except Cox.I still hold Cox.

United Bank of India — IPO: Avoid

Investors can refrain from subscribing to the United Bank of India's public offer. Though the offer is modestly priced, the bank doesn't appear to be a preferred exposure in the banking space, where there are a large number of other listed options. At the upper end of the price band of (Rs 66), the stock is trading at 4.37 times its trailing one year earnings.

This includes a huge proportion of income as well as write-backs from the treasury portfolio, as the debt market had a good run for the year ended September 30, 2009.

The price-to-adjusted book value post dilution (excluding the preference shares) works out to 0.9 as of September 30, 2009.

While this valuation is at a discount to peers, it may be justified as the bank may continue to lag its peers in terms of earnings performance. Banks with similar valuations such as Allahabad Bank and Andhra Bank have better operational parameters and may deliver better returns, going forward.

Choppy earnings

The bank suffers from low credit-deposit ratio (63.7 per cent), high cost-income ratio (57 per cent) and low net interest margins (NIMs of 2.4 per cent ). A low provision coverage (48 per cent) is also a concern and this may need to be bolstered, given RBI norms.

These also depressed the return on net worth of the bank which stood at 14 per cent as of March 2009. The profits of the bank were volatile during the period 2004-09 despite the bank witnessing a 32 per cent compounded annual growth in advances. Choppy earnings may continue until the bank reduces the investment-deposit ratio (36 per cent ).

United Bank of India, a Kolkata-headquartered bank, has 1,505 branches with predominant East and North-East presence.

The total business (deposits and advances) of the bank stood at 1.05 lakh crore as of September 2009. Advances grew by 32.8 per cent compounded annually for the period 2004-09 albeit on a low base.

This helped the bank to improve its credit-deposit ratio to 65.5 per cent; however this is still low compared with peers.

The current offer proceeds are to be used to bolster the capital adequacy which is necessary to fund future loan book growth. The capital adequacy of the bank stood at 12.93 per cent as of September 30 2009. The current fund raising plans (including an additional Rs 550 crore infusion from the government through preference share allotment) would bolster the capital adequacy base to more than 15 per cent.

Post-offer, the government's stake would fall to 84 per cent. Government stake is well above the mandatory 51 per cent stake, which may allow the bank to raise capital from time-to-time, which many other peers cannot do.

Historically volatile treasury income has impacted the bank's earnings and this will continue to be a factor in the quarters ahead.

Over a third of this investment portfolio is exposed to interest rate risk, which is a significant proportion compared with its peers. With a modified duration of 2.9 years, it may have to provide as much as Rs 2.47 crore for every one basis point increase in bond yields.

CASA advantage

High concentration in the Eastern region, where the demand for credit is low but the deposit inflows are high, has helped United Bank build a strong low-cost deposit base. Low-cost deposit base stood at 34 per cent as of September 2009, high compared with the nationalised banks' average.

Even though the cost of funds is low, the bank has a relatively low net interest margin (2.4 per cent for the half year ended September 2009) compared with most peers. While the December quarter may see slight improvement in NIMs, the recent hike in CRR would pressure margins. While the bank has done well to bring down the gross NPA ratio from 4.66 per cent in March 2006 to 2.5 per cent in September 2009, the proportion is high.

With a provision coverage of 48 per cent, the net NPA ratio stood at 1.3 per cent. The net NPA ratio of the bank is higher than the nationalised bank average. We expect asset quality slippages in line with the banking industry in the December quarter.

Total restructured assets of the bank is around 5.3 per cent of the total advances. Further asset quality slippages can be expected from the restructured loans.

While its current operational parameters are not impressive, United Bank has immense scope to improve its operational parameters over the medium to long term.

Investors should watch for such improvement before considering investment.

business line says for United bank 'AVOID'

Imran bhai sorry for that,I checked only discount & as it was given 5 percent I thougt it to be 62.7.Yeah it is confirmed 3 Rs discount.Happy investing.What about Man infra.How many applications u r going to make.

mr. all my dear invester .........Rs.66 ke hisab se 5 % discount yane rs. 3.30 hua. & . Rs.60 ke hisab se Rs.3 discount hua. jo price FIX hoga isme se 5 % milega.

Matlab 66 Rs k hisab se he paisa dena hai Allotmeant k bad Discount Refund hoga ??? confusing Sorry friends Lekin JSW Energy mein to discount kaat kar he paisa bhara thaa meine Fir bhi monday ko brokar se puch kar he form bharunga jo form bhardiya wo wapas mangwa lunga dekhte hai monday ko

@71. Vipul Verma

I think what you are telling is not correct. As per the press release of United Bank http://www.unitedbankofindia.com/press-19-feb-10.asp

You have to pay 66-3 = 66 per share. No question of refunding Rs 3 per share later. They will refund if final acceptable bid is lower than 66. What IMRAN did is correct

Message for Mr. 61 (Imran)
You have to make bid @ 60 to 66
If allotment price will for 66 then your bid will not be considered (As you have made for 63)
At 66 allotment price you will be refunded back rs 3per share as discount for retailer.
if you are applying ASBA only requisite amount will be deducted only after allotment

what is ABSA? How to apply United bank IPO through ABSA?

muje to 25 times retail me lagta hai.....

Friends eak singal account mein 1500 share bharne se acha hai 3 account mein 500 share bharna cahye luck ne saath diya to 3 account mein 300 to allot hoge he na agar full app karte hai to bhi 100 he milne ka chance hai

No64 p.shah accountant Sahi kaha aapne galti se likh diya sorry 1500 shares * Rs.63 = 94,500 yahi sahi hai